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    CBEF

    Mad cow recovery plan aims for 800,000 tonnes of annual exports by 2015

    Judy Monchuk
    Canadian Press


    Friday, September 16, 2005






    CALGARY (CP) - Canada's beef industry is working on an ambitious mad cow recovery plan that would ramp up exports sharply over the next decade while reducing reliance on the U.S. market.

    Ted Haney of the Canada Beef Export Federation says his members want exports of processed beef increased to 800,000 tonnes by 2015.

    "Our industry in the past expected they would export some 600,000 tonnes to all world markets by 2010," Haney said as he prepared for the federation's annual meeting on Friday.

    "They're telling us now that by 2010, based on increased (slaughter) capacity in Canada, they expect to export 700,000 tonnes," he said. "By 2015, they expect exports to reach 800,000 tonnes with 52 per cent of that total going to the United States."

    The key is reducing trade dependency on the United States from what's currently about 90 per cent down to 50 per cent in a defined period, said Haney.

    How to reach those targets will be the focus of an industry strategy session on Saturday that will include input from producers, processors, exporters and governments.

    "We're all working together to define what our future is and the tools we require to get there," said Haney.

    Drafting long-range plans is much easier for the beleaguered industry than coping with the continued uncertainly that hangs over relations with its largest trading partner, the United States.

    A group of protectionist ranchers is trying to get a U.S. appeals court to again close the border to young Canadian cattle. Although there are no guarantees the case will be heard, producers continue to be skittish after losing more than $7 billion in exports since the brain-wasting disease was first found in an Alberta cow in May 2003.

    "If you ask them for the next three months, six months or even a year, the answers are mystified and frustrated," said Haney. "There's so many dynamics at play that it's very difficult to have clear direction in the short term. But by 2007, there's a consensus that sales will be well above pre-BSE levels."

    Since mid-July, almost 100,000 cattle under 30 months have been shipped to the United States.

    But future prosperity lies in a more global marketplace. The industry now champions a cut-in-Canada future, where the only meat that leaves this country's borders has already been processed.

    "These export goals include no live cattle," said Haney, who has spent much of the last two years travelling through Asia, Mexico and Europe working to re-establish trade after international borders slammed shut.

    Earlier this week, federal Agriculture Minister Andy Mitchell created a new group to advise him on how to expand Canada's trade in beef and cattle.

    © The Canadian Press 2005

    #2
    And the goal of the Beef Initiative Group Canada, represented at this meeting as a voting member by "yours truely" is to allow a fair playing field for upstart Canadian and "producer owned" packing plants within the framework of the CBEF plan.

    Got a battle on our hands today with Cargill and Tyson over supporting testing for export market access.


    Randy

    Comment


      #3
      Well that is very interesting Randy. I wonder how the CBEF is going to muscle into all these foreign markets though?
      I thought Haney and company had been trying to do that for the last several years?
      I would think it could be a tough go considering other countries will have a lot of advantages in the way of freight costs, BSE status, cheap input costs?
      I still believe the USA is probably our best market possible, despite the recent problems...and by best market I mean the most profitable? But then what do I know?

      Comment


        #4
        Re Canada muscling into Asian markets. I recall CBEF pointing out its success in exporting beef to Macau and through Macau into China. As more information comes to light it and we see the foreign aid pouring from Canada into China (one billion in the last ten years, $54 million last year alone) it appears that maybe CBEF was taking credit when credit was not due.

        I see by the CBEF membership list that BIG C is an associate member of CBEF, along with the Royal Bank and Deloitte and Touche – Chartered Accountants. Associate members get a vote? Who all is on the board of CBEF? Ben Thorlakson is Chair and Ted Haney is President but I imagine Cargill and IBP are well represented if not directly then through the Canada Meat Council. I thought ABP had a seat on the board of CBEF by virtue of a large annual cash donation in the range of $500,000 or more. Are other provincial associations on the board? Government is represented?

        Cowman: I agree with your comments.

        Comment


          #5
          Shoot FS that's a lot of questions.

          First of all I would like to relate some thoughts from our meeting concerning the US market. CBEF was set up to lessen Canadian dependence on the American market. Tyson and Cargill need no help marketing cattle into their own country. CBEF was moving ahead and had made some major movement into Japan, Korea, Taiwan, and Hong Kong just prior to BSE and the Bull Shit Economics attached to it. When Canada begins to export to countries other than the USA once again, it will be based on price. Do you guys think this process is about finding new markets and then giving our product away? Asia is a economic bull. We sell beef more by pieces than by carcass, and many of these pieces are worth a lot more in Asia than the USA would ever dream of paying. Rest easy guys, when we drop American customers it will be in favour of better ones elsewhere.

          Yes FS, the packers have a major presence in CBEF, however the list of packers is growing. BIG C is not a packer member yet, but we have certainly found allies in cutting USDA reigns among new members. Our voice was certainly heard yesterday and heard strongly when discussing the 30% of CBEF's budget paid for by the producers of this country. New packers see export markets as a way to compete and a way to stay way from the power of Cargill and Tyson in America. Domestic will always be #1, and America #2 for a good while yet, but we have seen the results of one export customer, and none of us should ever agree that that was a good thing.

          CBEF has a role, but will never be the decision maker on such things as BSE testing for export marketing purposes. The key goal of CBEF is to develop new markets beyond America. Is that a bad thing - I think not. I may enjoy CBEF personally because I am involved sales and marketing, and when I see the inroads our BIG C organisation can make with all of the industry leaders involved with CBEF, I enjoy it even more.

          Yesterday was round table dicussions with members split in about seven groups. Our table alone included the Chairman of ABP, the outgoing Chair of CBEF Ben Thorlakson, the CAO of ABP, a high ranking Fed beuracrat, and a CCA director who had was trying to hide the holes in his nose from the ring installed by the mutinational packer led USDA. (DID I SAY THAT). Anyway, very productive meeting from my point of view with good conversation about moving back into the EU and the merits of testing to break the stalemate in Asia.

          Have a good one everyone.

          Comment


            #6
            Yes, that was a lot of questions. Thanks for the info.

            No, I don't think we give our beef away but politics does export our beef especially since BSE. That is not to say that CBEF does not play a role.

            Re one export customer. While I have been vocal about that export customer to the south and its protectionist trade barriers until we get competition for our live cattle in this country we are not going to get paid a fair price for our live cattle no matter where the beef ends up being exported.

            Comment


              #7
              The ultimate statement FS. I will not say I have crossed the line from cattle to beef, however my business involves both. When I stand up at meeting like this my first hat is that of the cattleman. These export markets are, in my mind, a way for competitive new packers to carve a new pipe. And competition is THE key to changing price to the producer in this country. We have capacity to harvest cattle, and an open border again to sell the excess, yet we still see price discount from one side of the border to the other. AND not only on fat cattle. Some of you may be excited about feeder catte prices this fall but do some math on what the boys in Montana are getting.

              Whether we all want to kiss Tyson and Cargill's ass and say they are playing within the rules, or say it is simply an accident. The power of these two companies is what is holding us back. And until we see competition, REAL competition in Canada, we will be at their mercy.

              Anything any of us can do to assist any one of the many Canadian Producer owned plant proposals will be something we can do to help ourselves.

              Comment


                #8
                randy, how many of the new packing plants ( ones under contruction and being proposed) were at the table during your meeting ?

                Comment


                  #9
                  Ranchers in Calgary was the main presence, and I beleive the main reason for the ABP change of heart.
                  We have been in close contact with the Rangeland beef and bison plant at penhold, and the plant just west of Edmonton was represented by a Wagyu guy who has a membership but also works with Shelengburgers (SP) plant.

                  Did not have a lot of one on one with the rep from Nilsen Bros, but saw a fence sitting position from some of the small packers and processors from across Canada.

                  The full list of members or any other info is available from the CBEF office in Calgary. (403) 274 - 0005
                  email canada@cbef.com

                  Comment


                    #10
                    There is another plant up near Fort Assiniboine that apparently is marketing some boxed meats, bison etc.

                    Comment


                      #11
                      Thank you for your answers and info Randy. We do appreciate your committment to the cattle and beef industry. Lord knows we need someone to do the dirty work so us slackards don't have to!

                      Comment


                        #12
                        my thanks also Randy. All too often producers sit back an let someone else carry the torch for them, and everytime a person volunteers it is money out of their pocket.

                        Comment


                          #13
                          We really appreciate your hard work on behalf of all of us.

                          And compliments on the fine story in Grainnews, complete with picture of a very happy looking Randy with his top notch cattle!

                          Comment


                            #14
                            Your welcome everyone, and thank you back. This site has been both educational and helpful in every opinion that I form and take to these meetings. Grassroots is something often forgotten.

                            Oh by the way, I've had a new hairpiece installed since that photo in Grain news Kato.

                            Comment

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