Time for an ABP rant -

[rkaiser]

And I hope some delegates are going to have a look.

Cam Ostercamp gave another powerful speech in Edmonton last week, and left his guns at home. He thanked ABP for inviting him to speak, and from my perspective offered an olive branch.

His tone is usual when speaking the truth about packer monopolies and the situation we are all responsible for getting ourselves into. Dependency on the American Packers, and dependency on the American consumer.

He talked of the opportunity for the levyshare concept to not only biuld new plants, but the possibility of this concept to help finance some of the other proposed producer plants that have stalled due to financing.

Now the perspective of some ABP delegates. He was rude - He doesn't know what he is talking about when it comes to the packing industry - He keeps attacking ABP.

Same words, two perspectives.

Now I would like to take a moment to recognize the background of people from these two seperate perspectives.

Most supporters of Cam Ostercamp are producers who cannot afford a $5000.00 share in a plant let alone the $100,000.00 asked by some.

ABP delegates and very many of the board of directors are shareholders who personally don't need competition. Do you think Xcel beef (Nielsen Bros.) wants producer owned plants. Why would big money investors in these new plants? I would say that any delegate who is part of an investor funded plant should excuse himherself from debate at the ABP level on producer owned packing plant proposals.

Then we have the very cagey cattle feeders who will tell you there is and has been money to be made in this marketplace. Sure there is; I have personally found a way. But my project is not making money off the dumb ass out ther who doesn't know better, as is the case of these cagey ABP entrepreneurs.

Finally we have the "open the border advocates". Again some of the top end of ABP, and in one particular case CCA.
These boys were makin money on heavy weigh cattle going across the line prior to the closed border. So much money, it seems, that they have been able to hang on through these tough times. One focus for these folks - get that border open along with their lucrative export market. Do you think these guys want a producer owned plant in their back yard? I would think so, but I guess not.

Last but not least, we have some delegates who simply cannot think for themselves, and follow those who they think they will benefit by following.

Ba De Ba De Thats all folks.

How bout some of you closet ABP readers writing me back in this lovely public forum.

Randy Kaiser
(403) 946 - 0228

[blackjack]

...rkaiser... you pretty well summed it up in a nutshell...the cattle associations could have rallied ranchers to build (ONE BIGC PACKING PLANT)but chose to let status quo lead the way...funny thing that greed thing...

[blackjack]

Just heard yesterday that the Municipal Development Permit has been approved for the Ranchers Own operation in the Devon/Acheson industrial park.

Randy, if the Big C project were to go ahead, do you still feel that the other proposed plants will be an asset to the industry . I know many folks in the industry that would like to invest a small amount in one project but are at a loss to understand where best to do so.

[farmers_son]

Lets face it...if it was about investing in a beef packing plant you can buy shares in Tyson.

If it is simply about creating more packing capacity investing in Tyson would still work, and Cargill is expanding without investment from producers.

If it is about creating competition in the packing industry that is a horse of a different color. None of the plants presently on the table propose to offer competition. Far from it... they want to capitalize on the excessive profits that the big packer monopoly are making at producers expense right now. That is putting it a little harshly perhaps but I have been to their meetings and that is how it is. Nothing wrong with that but they make it clear they will not compete with the price leaders/monopoly.

Many if not most producers realize that more packing capacity is not the answer in and of itself. In fact we will have access to more packing capacity once the border opens to live cattle, when, not if that ever happens. And some producers appear willing to wait for that to happen.

In my mind, it is about creating an alternative to selling live cattle on a live fat market with prices set by Cargill and Tyson using their monopoly position and captive supplies to control that price. None of these new plants will be able to compete with the big players for live cattle and they should not be expected to.

I think competition and a functioning market can achieved by creating an alternative to selling live cattle on a live fat market by creating a mechanism where producers can sell boxed beef on the wholesale market. Now I think there are other ways of achieving that goal other than building a packing plant owned by producers but the momentum is in the direction of a producer packing plant. There are models out there, Quebec is doing it, and in the U.S. Premium Beef is a success story.

The need is real. Governments and producers need to realize our industry has changed and the status quo is not going to work anymore. More plant capacity in and of itself will not solve the problems such as captive supplies and foreign dominance of our markets. Government and producer organizations need to come to grips with the fact that the live fat cattle market in the country is broken and probably cannot be fixed. My answer to that problem is create viable ways, beyond farmers markets and single operator retailing, for cattle producers to sell their produce into a wholesale market beyond provincial borders. For me, that is what it is all about.

[farmers_son]

I am sure that the majority of producers realize that there needs to be competition, however, most of the ones that I talk to are really wanting to invest what they can in an operation that has some chance of getting up and running as soon as possible.

[grassfarmer]

Farmers_son "Many if not most producers realize that more packing capacity is not the answer in and of itself."
I doubt that statement - I think most producers do believe that more packing capacity is the answer and haven't thought any further on the subject.

"Government and producer organizations need to come to grips with the fact that the live fat cattle market in the country is broken and probably cannot be fixed."
Exactly so - unfortunately no-one in a position of power seems to acknowledge this fact. I wish ABP and the rest of them would listen to your reasoned argument.