TRADE

[kpb]

farmers_son, I'm sorry I was not clearer in my thread--I did not wish to indicate that there is any relation between the retail price of beef and the price the producer receives--this is obviously not true. What I was trying to say is that people-both consumers and producers-will do what is in their perceived best interests. The customer will buy the cheapest, best beef he can get regardless of who packages it or where it comes from. And the producer will also act solely in his best interest--he will sell his animal to the highest bidder, regardless of whether that bidder is Cargill or a producer-owned plant. There is no link between these two processes but they both reflect the nature of human beings and I've seen nothing that disputes this.
I think it is typical of us to be discussing how each of our new plants can find a niche market--sure hope there's a lot of niches out there!! Wouldn't it make more sense for us to get our governments on side and build big plants that would be able to compete head-to-head against the multi's instead of scrambling after the crumbs that they leave behind? Do we really want to own just a little bit of our packing industry and leave the big part to the multi's? Does that not leave us vulnerable, for the most part, forever?
I'm not interested in having a domestic industry that is simply a bit player in our own country. I want producers to own most of the slaughter capacity in Canada--that is the only way we can assure ourselves of a good future.

[greybeard]

Great thread. I didn’t open it with Stout’s name on it. I think everybody but stout make good points. Farmer’s son, I am always amazed at the depth of your posts.
Nerves makes some good points. We often look at to big of a problem. We have to save ourselves, not the whole industry. The main point here is we have to get closer to the consumer in order to survive. We need a bigger share of the final dollar than the multi-nationals will give us. I agree with STOUT on that one. If they think South America is a safe place to invest and they can land it in cheaper from there, it will happen.
On another topic, Natural Valley out of Wosley has product on the market. A friend of mine brought some in and said it sold out very quickly. He was seemed pleased with himself, as he recognized it as a chance to support local producers. I believe they are having it custom-killed and can’t keep up with demand. They have a niche market plan that makes sense to me, but are sold out on the under 2 year old part of it

[grassfarmer]

Unfortunately, due largely to producer apathy, we have failed to raise enough of an issue that Government has been forced to take action either to control the two existing packers or to create alternatives to them. So we are trying for small plants - not by choice.

farmers_son, "One has only to look at the Alberta Beef promotions with the RancHers to see the power of a brand that producers could develop. Cargill and Tyson cannot even touch that kind of image." I don't quite understand that statement. It is a great image no doubt and one that should bring returns for Alberta producers - unfortunately Cargill and Tyson are currently the sole beneficiaries of this advertising with us producers paying the bill. How do primary producers reclaim the right to use this kind of image to our benefit not theirs?

[nerves]

So Kpb I see what you are saying but right now we have an oversupply of cattle and no were put them what happens ten years down the road. How hard is it going to be to keep a big plant running at capacity. Our ranching community is elderly at best 70 percent will retire in 15 years. Were are the calves going to come from to keep the feedlots full? My feeling is that a quick fix would be great but were do you go from there?

[cowman]

nerves: You have actually hit the nail on the head! The various governments are not doing much...and probably with good reason? The fact is with the new expansion plans of Cargill/IBP we really will have enough capacity to get all the fats killed...and they do seem to be able to market it?
It is true we need some cow capacity, at least in the short term, and somehow we need to get investment for that? Let's face it: Klein could have easily put up the money to build a cow plant but has chosen not to. Instead we have all these various schemes that are very "high risk" of ever making it. If there was any money to be made some enterprizing little soul would have built one already? Do you ever wonder how come we have abbatoires disappearing rather than being built?

[blackjack]

nerves...are you saying farmers should concentrate on selling the product after its processed ... is there not only so much beef that could be sold in a local market... don't get me wrong I think your on to something very important...farmers have invested in many packers over the years just to lose their money... we read quite often how the cargills buy more of the chain as for their acquisition of company's like caravele... maybe as farmers we need to look at how high we can go up the chain instead of focusing in just on packers...

[nerves]

Blackjack what I mean is do the processing yourself in a meatshop in an urban area. Let the small slaughter house do the killing and inspection then move the carcass by reefer van to your own butcher shop for ageing and processing. You will not have as much hastle or expense.

City people want to support the local producers, and they are amazed when they get a taste of the real thing as apposed to the crap they buy at the grocery store.

[nerves]

I agree with the government that they should not inject cash into slaughter plants that may not be viable once the border opens. Many of the smaller abbatoirs closed due to their inability to come into compliance with new regulations that came into effect several years ago. Our local plant closed and now only cuts and wraps meat, vs having to spend in excess of $100,000 to retrofit to meet the new regs.
We have to book animals in at least five months ahead of time to get them slaughtered at the closest abbatoir which is an hours drive away, although there are several operations that will kill on the farm and take the sides to age and cut and wrap in their facility.