Producer - Consumer Communication...???

[farmers_son]

I picked up on this comment that nerves made: "It is alot like gasoline, demand will set the price."

I wish it were so. Retail demand may somewhat influence the retail price but it certainly does not influence the price of live cattle at the producer level. The price Canadian producers receive for live cattle is not related to the retail price of beef in Canada or North America.

If supply and demand were driving the market we would not see imports of beef from the U.S. increase 84% at the same time as we are told there is an over supply of live cattle in Canada which the supply and demand advocates claim is the reason for our low live cattle prices. It just doesn't add up.

Supply and demand do not work to fairly distribute profits and returns in a non functioning market.

[nerves]

farmers-son I am refering to the world of direct marketing. We did alot last year (by our standards) and learned alot about the tricks of the trade. We feel we now have a plan and a direction that we will take us over the next ten or so years to complete. Last year in the parking lot of Canadian tire in Calgary and Red Deer we could not keep up to the steaks leaving. We were slaughtering 7 animals a week and needed to do about 12 to maybe keep up to demand. We sold 120 animals last year by the piece in a parking lot so for us the market was working fine, the cumsomers were fantastic no bounced cheques and a great attitude. In fact the phone kept ringing all winter. Grassfarmer I can't tell right off the top of my head I will have to look back into my notes most of the animals we had done were young(14 to 16 months) so they were put into steaks, not to many roasts. Most of our animals finished between 1300 and 1500 pounds and we got between 400 and 475 pounds of actual meat about 30 percent was hamburger. Not counting heart, liver, ox-tail and tonge, which by the way to our amazement were easy to sell. That course in Olds would have been an excellnt course to take but they did not run it last year. Grassfarmer maybe you would know if the course was to get filled or not.

[cowman]

The fact of the matter is the majority of our cattle leave the plant in a box to go into a basically generic market? For the packer it makes a lot more sense to end up with an 800 lb. carcass than a 600 pounder? Same cost to process but 200 lbs. more to spread that cost over?
And seeing how that packer is your customer, you had better give him what he wants or he will punish you for raising cattle that don't fit the system? I believe the hog industry is in to this in a big way? Every hog the same weight, finish, breed?
At the same time the feedlot knows what kind of cattle they need to make a buck? They really don't want a bunch of slow growing cattle that won't fit the packers needs! Oh sure they will buy these "off" cattle but will definitely factor in the higher costs through discounts!
So what do you do? You either grow what the market demands or you find another market! Pretty simple really...for every product there is a buyer and a seller...you just have to decide which market you can fit in and decide if you can make enough to bother doing it? For a lot of people that question is starting to make them realize that maybe quitting is easier?