What does this mean???

[gwf]

Thu, July 15, 2004
Beef industry to go it alone
Province, packers vow to ramp up processing capacity to end-run border ban

By PABLO FERNANDEZ, CALGARY SUN


Alberta is a key player in a made-in-Canada solution to the mad cow crisis that will see all domestic beef processed within the nation's borders. The plan means Canada won't have to rely on the U.S. lifting its ban on live cattle and will spell the end to the BSE crisis suffocating the country's beef industry by 2006, ranchers and provincial officials said yesterday.

That announcement, which Alberta Agriculture Minister Shirley McClellan endorsed, came following a meeting at the Calgary Stampede of international agriculture officials.

Ted Haney, president of the Canada Beef Export Federation, said the industry will be self-sufficient in two years, making the opening of the U.S. border to live cattle a moot point.

"That will bring an end to this crisis all on itself," said Haney. "We just need to ensure that we still have an industry by 2006."

McClellan said cattle-processing independence is a provincial priority.

"We recognize now that ... we should never have let (processing capacity) go like that," she said. "Nothing should leave this province that isn't in a box."

McClellan said the government will ensure the province has the capacity to process all of its beef and will not put that priority on the back burner even if the U.S. border opens in the near future.

Haney, who returned to Calgary from Ottawa just before yesterday's gathering, said the country is less than two years away from having the built-in ability to process all its cattle, resulting in the ability to process five million cows a year.

Haney said recent data indicates that Canada will be able to process 4-million head of cattle within the year and up to five million the following year.

Overall, there is a high demand for Canadian beef abroad, he said.

But a large portion of Canadian cows can't be processed locally and can't be exported live to be processed elsewhere because of international BSE restrictions, which means that even though a significant number of cattle are ready for slaughter, they're sitting idle and not generating revenue because they can't be processed.

"We need to be able to have the capacity to process 105 percent of all Canadian cattle," he said.

[greybeard]

How much capacity are we short? It seems to me I read that the current robbers can kill about 70% at the pace they ar going now.

[kato]

I think it means that finally someone is listening.

Now let's see if they can act on it.

[greybeard]

This doesn't mean our current packers are going to expand with government help?

[rusty1]

most likley GB - here comes surfdome

[Willowcreek]

Greybeard- I hope you are not right and that your government is not going to help Tyson, Cargill, etal expand. I've watched this situation progress over the months. I think the packers have done nothing constructive (except take all the BSE associated payments) for only one reason- they know they can gain permanent control of another major market the same as they have with hogs and chickens. Its called vertical integration to many in the business, but to me its the same as being a sharecropper or working manager (serf). Many in the states are backing this concept now to get larger-300 head isn't enough, next 500, next 1000, then 5000 head, but you never own anything. Its all owned by the corporation. If Canada falls its going to be harder to hold back down here in the States.

[Willowcreek]

The government isn't going to need to help. With the kind of profits IBP and Cargil are making at this moment, they can and will build. If not only to avoid the tax bill they will have coming.
Managed to buy two slaughter steers out of the Carcass Competition at the Calgary Stampede. Cargil bought the steers from the competitors for 75 cents. We negotiated a price of 1.75 on the rail. They wanted 2.50 in the box.
You figure out what they made.

We can only hope that some of these new plants are owned by producers and they are supported by those same producers.

[Willowcreek]

Sorry, I meant to add. Multiply your end figure by around four thousand head per day. I estimate between 30 and 50 million per month.

[greybeard]

So ,with that kind of quick payout why don't we see new plants.
I harp on this don't I ?

[kato]

You mean Cargill forked out an amazing price of 75 cents for show steers?

That is a disgrace! They should be ashamed of themselves. After all the cash they have hauled in over the past year plus, they can only afford 75 measly cents.

Our local 4H Fat Stock Show averaged almost $1.20 per pound over the whole sale.

This was money coming from mostly small local businesses who have been suffering along with us for the past year, but still wanted to show support.

Guess who I'd rather give my business to?

[pandiana]

gfw Can you give me the link to the story in the Calgary Sun? Thanks.

[gwf]

The whole story is as printed above. I was curious also, as to where the information originated. This was the top story in the Sun July 15th. The story was a report on a meeting or gathering he attended. I have not been able to contact him, but his email is pablo.fernandez@calgarysun.com. I hope this address works.

[bunny]

It's just going to be another pay-out to the big packers!!

[Horse]

Kato just why the hell do you think show strs are more valuable than non show strs.

[kato]

Most businesses in small towns come out to show support for their customers by buying their show cattle.

It's a tradition that goes way back.

At the Royal Winter Fair in Brandon, they'll pay hundreds of dollars for a dozen eggs, for pete's sake. Thousand dollar market hogs happen once in a while too. Quite often the proceeds above market are donated to charity by the seller, but in the case of 4H kids, they quite often pay their way through university.

It's cheap advertising for the buyer. It's good for charity, and the seller brings home some prime bragging rights.

Basically it's a way for businesses who's livelihoods depend on agriculture to make a symbolic show of support for their customers.

I guess Cargill hasn't figured that out.