Co-ordination of producer packers

[intr3est]

Sash brought up a good point today on Ranchers and I was wondering what everybody was thinking on this idea. Is there any co-ordination going into the producer owned plants being planned in Canada. I'd hate to see us start too many Federal plants, provincial plants, over capacity, etc. To make this work in the long run, we have to work indepently but also together to get the most bang for our buck. What are everybody elses thoughts. some of the guys that have worked with the CFIA may have more insight.

[grassfarmer]

The NFU was acting as a go between with a few of the Alberta plants a while back. Apart from that nothing I've heard off. I don't think there is a hope in hell of building too much slaughter capacity - look at the proposals realistically and you will see that in Alberta, Cargill and Tyson are a definate (the Government's solution) Sunterra looks good and the rest are floundering miles from shore.
Pathetic.

[intr3est]

Then lets get our boats together and get this done. Maybe instead of paying dues to an org. that only sees one option we should be paying towards some futuristic goals. Like the Canadian Producer Packer Assoc. Let's sh$t or get of the pot. But if this is going to work and keep the wolves at bay, we need to organize.

[grassfarmer]

Where have you been these last few months? The organisation that we all have to pay to belong to (ABP in Alberta) does indeed support the Government line on expanding the two current monopoly players. Any idea that a cow plant be built as proposed by BIG-C was taken to the ABP AGM and shot down in flames. Unfortunately it is not a realistic option to stop paying levy to ABP as it is law. Equally ABP make it clear that no way are any other people going to be allowed to take a levy off cattle to fund a producer plant. I'm sorry but even BIG_C is a dead duck at the moment as far as I can see. Please give me some suggestions where we go next. As I said before - we are in a pathetic position - but still most producers are content to sit back and do nothing hoping the border opening will bring back rosy times.

[kpb]

I agree that the status of our proposed domestic packing plants looks poor. I think it is most unlikely that 90 per cent will ever get built. That's sad. But what really disturbs me is that our so-called representatives have never even proposed that the government support producer-owned plants or that a check-off go to the building and on-going support of domestic plants. Why is that? How can these guys from ABP or whatever go to the government for ongoing support payments and not propose a government-sponsored plan for building our own slaughter industry?
This could take a lot of good forms--government loans, grants--how about bonds backed by the government and issued to the general public? Lots of ideas available to support our own industry. It's stunning to me that this has not happened. To me it indicates that either our reps do not know our real problem or they are in the pockets of the multi's. What other explanation is there?

[cowman]

kpb: No real explanation, other than the fact they just can't see the forest for the trees! They are honorable men who have a certain mindset and can't see beyond it?
BIG C has the plan! It might not get done at all....or it may, if the Yanks decide cow beef needs to be kept out of the USA? Now I've argued at times with Randy about this, but I have come to the conclusion that BIG C has the only solution that will work! And I hope Horner and Mitchel will have the intelligence to see the wisdom in the proposals by BIG C?
Cam Ostercamp, Grant Hirshe, and yes even Randy Kaiser(I admit) have got it right!

[gwf]

Complacency is the reason there is no movement on the producer funded plant proposal. A consensus of all producers is all that is needed to decide whether there will ever be a producer owned plant or not. The request for a vote could ask if the producer is in favor or not in favor of a mandatory levy on all cattle sales. Legislators would have to decide firstly if they will allow a vote and secondly, the percentage needed to carry or defeat the proposition. The ballot should include the naming of a facilitator to form a Provisional Board to do the due diligence that will be required. If we as producers are not given the opportunity to name the person or persons to initiate the process, someone could be named for us. I would sooner have the opportunity to be involved in who will lead this venture than have it made for me.

We are a long ways from this at the moment, and it is not going to happen on its own, it will need the support of more than BIG-C to create the momentum among producers to change the status quo. Listening to the news this evening, I heard a legislator from the US suggest that if the border doesn’t open on schedule, the Canadians may be doing something else with their beef and it may not be available to the US. Is this just rumor that they have heard, or are they coming to the realization that there has been enough delay and we are getting fed up.

A levy assessed on cattle sales for the next five years will generate between 130M and 150 M from sales of cattle in Canada. We are going to spend nearly this much on ear tags during this period (at current prices). At least with the levies paid we will have something to show for it in the end. We will have (own) a plant facility or facilities that could handle 3 to 4 thousand a day with no debt and by contracting the operations out to people that are more qualified than us, we as producers would not be exposed to the financial risks that plague most operations of this magnitude.

I have given odds of 60 to 40 that the border will not open. We have to realize that the feed ban that (we have been told) was put in place in 1997 was voluntary. If we believe that the root cause of BSE is caused by prions and are only destroyed with extreme heat, we have a problem. I personally hope it stays closed.

[SASH]

I guess that my concern is that there seems to be alot of options where producers can invest. Currently, in Manitoba there is talk of two fairly large plants. I believe the one in Dauphin is going ahead but it is a cull cow plant and most of my cows are still pretty young. There is talk about a natural beef plant in Neepawa but alternatively, the local guy is looking to expand as well. I guess I'd be worried to commit money to a project if I wasn't sure it was going to go ahead. Not only would you have no plant to show for it, but you would have put money into it that you probably won't get back. If the local guy could get a few investors together, I'd get behind him because he's only about 7 miles away. Currently, he is booked into December.