Beef Industry Conference

[rkaiser]

Oh yeah, we take a little story along to our BIG C producer meeting about Maggie Delaney. This is one firecracker of a gal who started a market for grain fed D1 and D2 cows to South Korea prior to BSE.
She had such demand that near the end (May 20/03) she could not fill orders with her own purchases so had a deal with Garnet Altwasher over at Lakeside to simply buy D1 and D2 carcasses to fill her orders. She felt that that one customer alone had a home for over 100,000 D1 and 2 cow carcasses alone. This was at pre BSE cow prices mind you!

South Korea is even more strict than Japan as far as rules about BSE testing.

[BFW]

Randy I have just finished rereading all of the info posted on the BIG website though I admit I did not realize that the plant proposal had been updated from what it had been before and some things are a little clearer now. Certainly the option of deducting a larger levy on cattle processed only at the BIG plant is a more palatable option for me at least although probably does not provide as much certainty for the plant itself. Also I now have a clearer picture of what BIG's thoughts on a lease operator entail. It's too bad that BIG did not try to get on the agenda of the ABIC conference (or did they?) as it would have gotten more discussion likely at one of the bear pit sessions. Perhaps BIG should try and persuade the various ABP zone directors to hold some special zone meetings to discuss this and other timely topics rather than wait until fall? I could put a word in to Zone 3 if you like.

[rkaiser]

I really appreciate your offer Jeff. Sometimes the passion of our goals sends the wrong message to those we wish to reach. I will have to say that Cam is probably even worse (or some would say better) than me. I had a good chat with Eric Butters the other day in Red Deer, and would certainly come prepared if invited to some sort of zone meeting to discuss something further. Open border or not, consideration for change must be on the table. I've heard from some pretty high standing Cargil employees lately who would welcome the chance to work for, and with, a Canadian company. Cargil and Tyson are not the enemy but they could very well be the competition rather than the only store in town.

[farmers_son]

Isnt there a contradiction in your packing plant proposal? I read that it is proposed that the plant be leased by a lease holder who will be responsible for all aspects of the plant or alternatively by a foreign team of professionals with expertise in creating off shore markets.

Yet on the other hand the proposal goes on to spell out just how the plant will be operated and the beef marketed, i.e. BSE testing. Wouldn;t that be up to the leasee/operator? Or would a commitment to test for BSE be a prior requirement to qualify to be a leasee?

[grassfarmer]

BFW, Pleased to see your support for BIG-C but in my opinion you are wasting your time trying to persuade ABP of the merits of such a plan. Look how much effort was put into raising this and other issues of producer concern at last Falls producer meetings to no avail. Even if resolutions were passed at zone meetings they were binned before or at their AGM. It is clear the Alberta government and the dictators(directors) of ABP have another agenda and will only support the expansion of Cargill and Tyson. I really hope the Federal government which appears to have more sympathy to the BIG-C cause will step in and bridge finance this proposal. Failing that I think the proposal is dead in the water. Sorry to be pessimistic but that's the way I see it.

[farmers_son]

I think the reluctance of the ABP to endorse any plan put forward by BIG C or others is what is the best way to structure the financing.

It may be that the method whereby irrigation is funded in this province provides a model that works. Cost sharing by the province and participating Irrigation Districts provides a practical, established, working method of seeing expensive capital intensive, enviromentally sensitive projects move ahead.

And since these irrigation projects directly compete with existing dryland producers in Alberta and elsewhere the issue of government supporting and providing bridge financing to a producer packing plant that will compete with existing public shareholder packing plants becomes irrelevant.

Just an idea...

[blackjack]

...it is interesting when it comes to government picking winners and losers...heard Ag minister Horner talking on expansion of Sunterra's plant in Innisfail...he went on to say how nice it was to see the added slaughter capacity and great job the Price family and investors ...in their specialized packing plant will provide for the industry...

[blackjack]

rkaiser...has your team ever talked to the UPA of Quebec...just wonder if someone partnered up with the Quebec boys the feds would take a look...it seems to me to get something out of Ottawa you would have to start in Quebec...

[gwf]

Farmer Son: I think the reluctance of the ABP to endorse any plan put forward by BIG C or others is what is the best way to structure the financing.

It would be very interesting to know ABP's reluctance. Derogatory opinions and letter to the editor and insults by APB representatives at producer meetings would suggest that it is more than a question of structuring the financing. When you find out what the real reason is, please let us know?