I don't know how much it will affect our production Emrald - I question how big a heifer sell off their was in 04 given the calf set-aside program. Depends how many moved their heifers before they worked out the program.
I wouldn't assume that reduced cow numbers either in the US or Canada will result in better returns for the cow/calf producer.
I think the new era that will dawn after the border opens might disappoint us. With the increasing strangle-hold that the packers have on feedlots/ primary producers the potential for upturn in the market will not be what it was in the past.
I read last week in connection with the Bonnett feedlot case that 15% of feedlots are in the same position - the banks holding the gun to their heads with their only survival option being to custom feed for the packers. We may think there is little progress in the border opening or new packing plants being built but there are huge changes going on in the industry as a whole - and none of them good for cow calf producers.
I wouldn't assume that reduced cow numbers either in the US or Canada will result in better returns for the cow/calf producer.
I think the new era that will dawn after the border opens might disappoint us. With the increasing strangle-hold that the packers have on feedlots/ primary producers the potential for upturn in the market will not be what it was in the past.
I read last week in connection with the Bonnett feedlot case that 15% of feedlots are in the same position - the banks holding the gun to their heads with their only survival option being to custom feed for the packers. We may think there is little progress in the border opening or new packing plants being built but there are huge changes going on in the industry as a whole - and none of them good for cow calf producers.
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