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Packing capacity?

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    Packing capacity?

    I read an article(not just too sure where...might have been the Western Producer)where some enterprizing soul, intended to build a plant in Manitoba. Now I believe he basically was ready to go, had his ducks in a row, and his money in place.
    I would suggest this is the type of deal the various governments should support, rather than waiting for all these so-called producer plants to get their act together? Here is a guy who obviously knows his business and is ready to take a risk and give it a shot. I like his chances of success much better than some sort of vague co-op where people don't really have a clue?
    Maybe I'm out of touch or something but I believe the meat business should be run by the people who know the meat business...and the cow business left to those who know cows? I don't believe any of us can be "everything" and we should concentrate on doing what we know instead of trying to be a cow/calf producer, a feeder, packer, a marketer, a retailer?

    #2
    Cowman. Somehow I beleive you have managment and ownership confused. The people who manage and operate any plant, or business for that matter are the ones with the opportunity to create profit. I would suggest that as owners, producers would have very limited input into the running of the plant. Profit would certainly be front and center on the minds of management in a producer owned situation. Every packing plant has a board of directors of sorts. If you think every decision in this plant that you speak of in Manitoba, or with Cargil and Tyson is made by one person, think again.
    I understand your fear of beuracracy etc. etc. but why not set rules ahead of time to control those things raqther than simply talk of the need to sell to private ownership once infrustructure is in place.
    The whole idea, and reason for Ostercamp and BIG C backing a levy funded producer owned industry is for the producer to be able to reap the post slaughter benefits of the beef industry.
    There are lots of business plans out there that reward managment for production and profit. The BIG C propsal as well as the other New Gen Co-op ideas have looked at all these options I am sure.
    I agree with the idea that Boards of Directors could not run these plants. But hired guns with some ability to move and react on their own could.

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      #3
      Perhaps you are right. And I suppose if producers were recieving shares for their "levy" they in fact would be private owners? Would these be voting shares and would an owner be able to buy and sell these shares on the stock market?
      Although I generally support this idea of a levy funded packing house, I still have some problems with it? I wonder how the whole thing might play out with the other packers? I believe our trade deals basically say we can't treat domestic slaughterhouses any different than we treat our American owned slaughter houses? Do you think Cargill/IBP might be a little upset and demand some sort of parity?
      I also wonder how the other new co-op/plants would be affected? Say a person has invested $5000 into Ranchers Own or Choice. Would they then be expected to pay the levy? Wouldn't they be having to pay the bill, to compete against themselves, or would they be exempt? Would a levy be collected on all slaughter animals, or just the ones being slaughtered at the plant? Or would the levy be on all animals sold...like the ABP checkoff?

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