Another Consideration

[cakadu]

As the border closure drags on and limited amounts of Canadian beef go across the border, we still hear from time to time about how the Americans want Canadian/Alberta beef.

What do you think will happen to American tastes if they continue to experience difficulties in getting Canadian Beef? Will people continue to demand it and wait for it no matter how long or what the price is or will they begin to make substitutes with their own beef or with other sources of protein?

Bear in mind that consumer tastes are fleeting and even though you may desire it, you'll desire it for only so long?. Or will they wait forever?

[cowman]

They might have to break down and buy some of our barley...well if the CWB will let them! Might have it committed to Aba Daba or something!
In fact Canadian and American beef are the same genetics, basically and the only difference is barley fed or corn fed? Some prefer corn fed beef, some barley fed. My own personal encounter with corn fed beef was that it wasn't all that great but I have had a steak or two in the US that were really good!
My neighbor is a small grain broker, and is the "go-to-guy" if you want to get a heads up on where barley/feed wheat prices might be heading in my area. He buys large amounts of feed grains for Lethbridge area feedlots. He tells me the feedlot boys are real wishy washy about making any committments this year. A lot of them are on the edge and if things don't improve they will shut it down! I guess Ralph needs to get out the checkbook again!

[rain]

cowman feedlots are in the same situation cowcalf producers are. To much uncertainty. The guy feeding his own cattle or pen sharing is is dire straights just like cow calf operators.

A few years ago there was a lot of animosity between barley growers and feed lot operators. It appears right now a lot of cow calf producers want to dump on the feedlot guys right after the godless packers.

I know an operator who generally feeds 15,000 head a year for themselves. They have spent millions building up there own feedlots over the last 10 years. They are hurting right along with feedmills, machinery dealers and any business who is ramped up to do business with cow calf people. These, (non cattle feeder, cowcalf producers, packers) people get no government support in any way shape or form at any time.

Cow calf producers may feel short changed but there are others who are feeling the pinch as much or more from the BSE problem.

[cowman]

Well rain, unlike some people here I was not dumping on feedlot owners! I was stating the obvious fact that if they go down, us cow/calf guys go down even harder? And hey, so do us barley growing guys?
I have a slight problem with you trying to include the packers in the mix, however? BSE has been very good for IBP/Cargill? Record profits, I believe?
But what I was trying to say was this: If Alberta intends to keep any kind of cattle industry in this province(or for that matter, a feed grain industry) they need to step up to the plate and support our feedlots! If not the ballgame is over, for the feedlots, the cow/calf guy and ultimately Alberta packers?

[kato]

Manitoba....excellent! Let us know as soon as it is set.

[kato]

Since Cargill probably has more assets than the government of Canada, I don't think we need to lose any sleep worrying over them.

Other than that, the whole lineup from calf to fat steer needs to be protected. Not everyone has the facilities, feed, or knowledge to fatten their own calves. To say nothing of the cash flow!

It's like a house of cards, you only need to pull one out, and the whole thing comes tumbling down. This is not the time to squabble between feeders, grain growers, and cow-calf people.

We're all in this together. 'Divide and conquer' has been the way that basic agricultural producers have been kept in line for a lot of years, and it's time to change that.

As a collective group, the agricultural community has a tremendous amount of power. We control the food supply, for Pete's sake. We just don't know the clout that is really available to us if we just work together.

[rsomer]

Interesting...the packing plant expansion the industry needs might not happen in Alberta but in Saskatchewan or Manitoba.

[grassfarmer]

Well done Randy, looks like we are forging ahead again. Just as well as the silence from everyone else is ominous. ABP seem to be pleased just to keep their heads down because no one is critisising them for now - hardly what you would call leadership.

[blackjack]

grassfarmer...ABP are busy promoting Lakesides new expansion plans for 2005 ... wonder how much of the 17 million Ralph or Paul are putting up...in other news a Cargill subsidiary bought out patty maker Caravel... watch for the price of burgers to rise in the fast food chains...

[rain]

cowman I was not defending the packers. I was just trying to put in order the hurt factor.

As a side note Lakeside announced yesterday they are looking at expanding there kill capacity possibly up to 1000 extra head a day by next fall.

[kato]

Maybe this should have it's own thread, but since it's something Big C is pursuing, I'll put it here.

"I do not mean to argue here that all American beef cattle must be tested. There may be American consumers who prefer inexpensive beef. But the U.S. meat companies that want to perform blanket testing should at least be given the freedom to do so, just as Japanese consumers should be allowed to pursue food safety as a priority in their lives.

from Teruhiko Mano, a professor at Seigakuin University,Japan "

Now, if the Americans want to sit and twiddle their thumbs on this, maybe we should be pushing even harder to have Canadians step up to bat.

Has anyone from Canada even spoken to the Japanese?

From what I hear, Japan is still insisting that the Americans guarantee no Canadian beef. We all know how good the Americans are at keeping promises, so I have a bad feeling we are going to be shut out again.

Anyone who gets between America and it's profits is in deep trouble.

[cowman]

That deal where Cargill bought out Caravel Meats is sort of scary! Caravel meats is not some sort of minor player...at one time they supplied all the beef patties for Wendys and MacDonalds in Canada! Not sure if that is still true?
So what would happen if beef producers built their own cow killing plant? Would they be at the mercy of Caravel meats or would they add their own processing plant to make patties? Of course how it works is you need a certain amount of fat to mix with the cow/bull meat to get an acceptable/cost effective product? Who is going to supply the trim? IBP perhaps?
IBP was probably the largest cow killer in Canada before BSE. If the regulations change back and they can resume killing cows, I expect they will? After all cows were their bread and butter...pre BSE?