BSE cases

[Braveheart]

The concept of producer owned plants has merit for all the reasons discussed many times in this forum. However, when government money becomes involved, things get a little cloudy. For instance, there are some abbatoirs in Manitoba that have approached the government for loan guarantees or grants to expand and were turned down. Now Ranchers has some MB gov't support, so eventually those "rejected" abbatoirs will be competing against gov't money if and when Ranchers' Choice comes on line.

The moral hazard is that by helping one firm become established we may be hurting already established and previously sustainable enterprises with a taxpayer supported unfair advantage.

[cowman]

I would also point out that most taxpayers would "appreciate" it if government tried to spend their money in a conservative fashion? Just because the last bunch were a bunch of spendthrifts doesn't mean we want the present bunch to be?
I suspect that Mitchel might have some doubts about the viability of this plant? Maybe we do need this plant today but what will happen to it down the road when the border is fully open? And who will be left holding the bag if it fails?
Good questions to be asking if you are spending the publics money?

[farmers_son]

And obviously that would apply not only to small abatoirs but Cargill and Tyson and all existing players in the packing industry.

Don't we need to focus on the problem, not enough packing capacity and not enough competition in the market, rather than focus on government assistance to provide producers with an alternative way to market their product will adversely affect the existing players?

Government intervention is called for in times of market failure. The question is should the government intervention come only in the form of ad hoc handouts and subsidies. Or should the government help producers help themselves by providing assistance for producers to own the means of marketing their own beef instead of continuing to be dependent upon the very same existing players who really were a big part of the problem since May 20.

The status quo is not working and the status quo is not where the industry wants to be 2 years from now.

If producers owning a packing plant causes existing abatoirs and packers to sharpen their pencils, is that such a bad thing?

[jensend]

http://www.theglobeandmail.com/servlet/story/RTGAM.20041202.wcows1202/BNStory/National/

seems like they get what they want. what do we have to do to get a similar deal. our checkoofs should be able to do the same as their union funds.

[topper]

Cowman: The government has two choices to make. Either invest in more slaughter capacity for these old cows or keep on paying out cais payments. Either way the taxpayer gets the bill. We are in a much tougher situation here in manitoba because we have even less access to slaughter for our old cows than you do in alberta. As far as it interfering with existing plants, I can't see that happening as this plant will be mostly deboning and shipping boxed frozen beef to others for further processing. I don't think any of the small abbatoirs around the province are doing this or have the cfia inspection that is required to do interprovincial trade. Maybe someone could correct me if I'm wrong on that. I have to agree with you that this plant could be on pretty shaky financial ground once the border opens to OTM cattle but I can't see that happen for quite awhile and by the time it does a big part of the debt should be gone if it is managed properly.

[kato]

The rumour I've heard is that it will open to beef from OTM cattle along with live younger ones. That's what the last rule contained before R-Calf shot it down, if my memory is correct.

That can only be a good thing for the new plants. The day a live cow gets on a truck for Nebraska is a long way away yet.

[grassfarmer]

I wonder if the view that the Feds are taking is the border looks like it will open to young cattle and possibly OTM boxed beef in the next 6 months. At that point the assumption is that cattle will vanish south - fats, feeders and beef at a great rate leaving enough killing space in Canada with existing capacity to kill OTMs. This way the Fed's save taxpayer dollars and the problem resolves itself. They may learn a few years from now that we are more reliant than ever on the US. They are politicians though so don't expect them to realise this too quickly.

[redcountry]

A great week for the beef producers in atlantic canada!

The new plant ABP Atlantic Beef Producers killed their first animal this week.
after a final inspection they will start production, its going to take some time to get into full production

lets get the show on the road I cant wait ,got some fats standing at the gate ready to go.

we have been without a kill plant since Hub Meat Packers Moncton N.B. closed its doors, so on top of BSE we have a 1400 mile trip to market.

shrink,dead stock on the trucks ,dark cutters,are a few of the reasons for the new producer owned plant.

Wish us luck!

[greybeard]

Congratulations on getting up and running Red Country. It’s great to see a producer-owned plant in operation.
Never stop promoting; you are in charge of your own future

[farmers_son]

I was interested to read of the work the Atlantic Beef people had done branding their beef product at:

http://www.co-opsonline.com/english/releases/PR_30May20021.shtml

The beef industry in the Atlantic region may be small but they are achieving results. These are the kind of results that translate directly back to increased profits for the producers.