ABP Strategic Plan

[farmers_son]

The ABP is asking for input on its Strategic Plan. See:

http://www.albertabeef.org/stratplan.html

The thrust of the strategic plan is to strengthen the sustainability and competitiveness of the beef industry. This brings up the question of just what is the beef industry. Is it producers like you and I? Or is the beef industry Lakeside and Cargill and further processors like Cargill owned Caravelle Foods who make hamburgers for McDonalds.

No where in the Strategic Plan is there any indication of support for producer packing plants in Alberta. For the most part the new direction of the ABP is exactly the same as the old direction. There is a saying that if you keep doing what you have always been doing then you should expect to get what you have always got.

I think producers are going to have give serious thought to whether or not they want to keep on getting what they have got in the past and how long they can continue with the status quo. Is spending more money on the status quo going to put more dollars in our jeans or is it time our producer organization stepped up to the plate and acknowledged that we are not getting paid a fair price for our live cattle and that something needs to be done about it?

Adjusted for our Canadian dollar, American producers continue to receive between $160 to $200 more for a fat steer sold in the U.S. than the exact same steer would bring a Canadian producer sold in Alberta. And that is after millions and millions of dollars have been spent on promoting beef’s image. We simply cannot afford to keep doing that. I guess some would say that if the dollars had not been spent on promotion we would be receiving even less but I think it is open to debate whether the packers have been passing any of the benefits of beef promotion and market development down to the Alberta producer or if the packers have simply captured any benefits for themselves. At some point consideration needs to be given to whether the millions spent on promotion actually benefit producers or would producers receive a bigger bang for their buck by creating mechanisms to ensure competitive bids for our live cattle.

We still do not have a functioning competitive market for live fat steers and heifers in this province, and that is saying nothing about market cows and bulls. It appears to me that the ABP is deliberately turning a blind eye to the problems of lack of competition for live cattle and instead is dithering over more promotion and lobbying. I think it is time that our producer organization started worrying about receiving competitive bids for our live cattle which would be focusing on we really can do something about and less time promoting beef for Lakeside and Cargill (the beef industry).

[pandiana]

Great post! Farmers_son. However, Do you really expect to get a resonse?

I have heard "the calf prices this fall are good". I have come to the conclusion that this is as far as most producers are willing to go as far as assessing the future of the cattle business.

I recently sat in a meeting with a group where it was stated that the feeder industry just had two years of record profits. They are very worried that this may come to and end this year as prices are high. It is these kinds of pronouncements that keep me focused. When is the rest of the primary producers going to get focused.

[wilagro]

What in hell has the preceding srticle have to do with "Rural Issues"?

Perhaps we need a "POLITICAL" FORUM to 'cut and paste' to.

Debate or discussion is one thing but 'onesided' advocacy (spellin') is another.

[cowman]

The ABP never was an organization for the cow/calf producer. It always was dominated by the feedlots and the large "welfare ranchers"?
Now ask yourself this: Who are the large feeders and how do they stand in this whole thing? How many of them are really independent and how many of them are virtually front men for the packing industry? Some of them took a hit in 2003 for sure, but after that it was business as usual?
What you are asking for is an R-CALF type organization...hopefully without all the stupidity? Who does R-CALF stand up for? How long have they been railing against the packer monopoly?
R-CALF was a good idea? An organization that represented the interests of the cow/calf producer instead of the feedlot and the packers!
If I lived in the USA I would have been an R-CALF supporter...at least until they started self destructing by telling the American consumer that their product wasn't fit to eat!

[ivbinconned]

Who pee,d in your corn flakes this morning!

"Kyoto" was mentioned in the above artical...thats a "rural" issue!

Wilagrow, Strawboss or whatever you will call yourself next, maybe you like being a mushroom...kept in the dark and fed.......

After 7 decades I guess its hard to accept...you have been conned!

[blackjack]

...the big difference between the usa rancher and us ...is that we need the export markets... and that is where i have a hard time trying to figure r-calf out ... why would they(r-calf) not build their own independent packing plant...that way if they only processed american beef they could provide a product to their own consumer... or are they also afraid to go up against the big multi-national plants...
...the one thing they have proven by having a strong voice ...is that their politicians did take notice...and when their prices do drop they will be back blaming it on you know who...something our polticians and cattle organizations better be prepared for...and as we have seen in the past this would appear to be highly unlikely...

[blackjack]

ABP zone meetings are coming up shortly. This is your only chance during the year to let the organization know what your concerns and suggestions are.

[cowman]

Well blackjack I think most of the R-CALF members just want to be ranchers, not packers? Sort of like here really?
But I do believe there should be laws in place so the packers/feedlots can't rip off the primary producer?
In reality to build producer plants without some changes in legislation is an excercise in futility? Cargill and Tyson will eat those boys for breakfast?
The US has more protections in place than Canada for smaller plants and more protection for the producer?
Tyson and Cargill basically control the price of that calf once he leaves the farm. How many of the cattle on feed do they own? We know they got some pretty big checks from the government on fed cattle and how many of the big feedlots are actually owned by them...that isn't common knowledge?
Take a look at the hog packing business if you want to see where we are headed? The small guy is being forced out by the big packers. Now I realize beef is somewhat different, but I do believe the small feeder will be forced out.
Our government will not stand up for the small farmer/rancher. They have proven that time and time again? Their philosophy is get big or get out!
So where does that leave us? Well if you can't make a profit at something why would you do it? But the fact is there can always be a profit if you use your head and do the right things? It might be a freezer beef trade or it might just be keeping your costs lower than the average guy? Cargill and Tyson don't want to have to raise calves! They will always allow the calf market to just squeak by?
If we had a government that brought in rules so one segment of the total industry couldn't dominate that industry that would be helpful? Maybe make it a rule that every animal had to be sold by public auction would be a start? No more crooked little deals behind closed doors would bring some transparency to the market?
Does the ABP serve our (cow/calf) interests or do they serve the "industry" interests? The "industry" is actually doing quite well...how about us? Maybe it is time we had an organization strictly for the primary producer and let the ABP take care of the feedlots and packers? I'd rather pay my checkoff to a group like BIG C than give it to the ABP.

[cowman]

Cowman the government listens to Alberta Beef Producers; Alberta Pork etc. In fact you would be very surprised to know just how much clout Alberta Pork has in policy setting with Alberta Agriculture.
I agree that the primary producers need to get vocal but that would mean that the majority of them would have to be singing from the same songsheet which I doubt will ever happen.

[farmers_son]

While it is indeed difficult to get the majority of producers singing from one song sheet, I think it is fair to say that in Alberta most producers are looking to producer packing plants as a solution to the problem of unfair pricing for our live cattle. The difficulty lies in how best to achieve that goal.

I agree that ranchers here in Alberta want to be ranchers, not packers. I would also think they would like to get paid a fair price for their live cattle. There is no sound reason why a Canadian producer gets paid $200 less for his fat steer than that same steer would bring in the U.S. other than a lack of competition within the market place to force the packers to pay fair prices.

Cargill and Lakeside are not angels, they will not pay us any more for our live cattle than they are forced to. It is about time that ABP recognize that fact. You can have all the beef round tables and value chain concepts you like, cozy up to the packers until you are blue in the face, but the big packers are not going to sacrifice any of their profitability to improve the lot of the primary producer unless they have no other choice.

I do not think anyone is trying to beat the packers. In fact I would go so far as to say our industry needs Cargill and Lakeside. However we also need fair pricing for live cattle. BSE pointed out to us how dependent we were upon the U.S. to provide competition for live cattle. We have seen the border can be closed and given the sentiments I see expressed in the United States, not just from R-Calf but a fairly wide segment of the American public, I think we need to expect further border harassment. While hiring lawyers and trying to beat the Americans in their own court is one solution I think a better direction is to try to create made in Alberta and Canada solutions such as establish a competitive environment that would see our producers getting paid fair prices for live cattle right here in Canada even if the border was closed to live cattle. While selling beef might be the goal of ABP, selling live cattle is what I get paid for. And you do not have to be the sharpest tool in the shed to know you are getting ripped off when we get $200 less for a fat steer sold in Alberta than if that steer was sold on the other side of the 49th parallel where there is more competition for live cattle.

The price of live cattle will rise and the price of live cattle will fall but unless we tackle the problem of a lack of competition for our live cattle we are going to continue to get ripped off whether prices are high or low. I am convinced we can improve the pricing of live cattle in this province if we put our minds to it and set a goal of improving the basis for live cattle between the U.S. and Canada. Producers of live cattle need to start looking out for themselves even if that means forcing the “industry” to pay us a fair price.

If government listens to ABP, and I agree they do, then it is important that ABP starts to acknowledge there is a serious problem with pricing of live cattle in this province and that creating a fair competitive market place for live cattle needs to be a priority.

[rkaiser]

Prior to BSE our industry was becoming more integrated and, shall I say, legitimately one industry. Cargill and Tyson were offering grid pricing schemes and extra value for carcasses that held more value at the wholesale level. Sure we had margin players and a degree of seperation between producer and packer, but there was also room for small players to start up and take the risk of value adding ourselves. Groups like our Canadian Celtic, (then Galloway by Choice) had there roots set at this time, as well as some of the organic initiatives and a few branded export products. Sunterra, Diamond Willow, the Kobe beef boys, and the Piedmontiese exporters are a few that have yet to give in to the forces against them.

You want to talk about forces against. Investment in the cattle industry is one thing, investment in the cattle/beef industry is another. The closed border has made this game an even tougher task for those who invested prior to BSE, and made it near impossible for new comers to join in.

Rule changes have favoured the multinational packers ever since the closed border OUT OF FEAR. Very little consideration has been given to the efforts of CANADIAN ventures due to this fear that Cargill and Tyson may slow down a line.

Hogwash.

Cargill and Tyson are in business for profit, and profit has been there for the taking since Sept. 2003. And continues NOW as farmer-son has pointed out.

The shift in ABP policy was somewhat evident at the CBEF meeting where CBEF and even ABP supported testing for export marketing purposes. A move that would give new packing plant proposals a tiny leg up on the multinationals. Let's hope this shift continues and more effort is made to promote and assist new CANADIAN packing initiatives.

THI IS THE ONLY WAY TO CREATE THE COMPETITION WE NEED FOR PRODUCERS TO GET A FAIR SHAKE AT THE SLAUGHTER LEVEL.

Feeder prices ARE NOT GOOD. They are better than what they were, but nowhere near what producers need to operate profitable businesses.

We do not all want to be packers. But the BIG C idea is one that allows us all to take part in some of the post slaughter benefits without investment of time or very much money.And allows for a return of competition to the market which is pathetically dysfunctional even with an open American border.

The CCA has continued the fear stance. Fear of what the Americans might do, fear of loosing a shift at a Tyson or Cargill plant, while Tyson plays games with their Union backed by a warchest from two years of massive profits.

A footnote. Believe it or not, a slower line, or a shut down at Tyson would actually help our Canadain Celtic program. Hard to figure you say?
One more of the effects of this whole debacle is a major frozen inventory of low end cuts in Canada. The profits are soo good for a boxed product south of the line that Cargill and Tyson have the ability to play the lowball game in Canada with product that ALL of us want to move. Let this inventory drop a bit with a closed plant and all of a sudden, CANADIAN wholesalers may have a chance in this pathetic market.

Cargill and Tyson have chosen to take the route they are on. Producers of this country are simply paying the price. Should those of us who speak out against this unfairness be ostracized? Should we be held responsible for tearing apart a system that WAS becoming more integrated prior to BSE?

Or should we continue to fear the rath of Cargill and Tyson, and/or the USDA like the CCA has chosen to do?

Time again to speak up at the ABP meeting. Time again to harden your skin and be prepared for volleys from leadership that is more fearful than you. If everthing that ABP or CCA did was right and unchallenged, we should all be profitting well in a world priced beef market as high or higher than any time in history. We are getting closer, but we are not there yet.

[rkaiser]

I agree it is time to speak up at ABP Meetings but there is still time beforehand to raise issues and concerns with your zone delegates or candidates. They are supposed to represent the grass roots so the grass roots should speak out.

[cowman]

Well I don't know about the fat market but the feeder market is not all that bad. Yes it would be nice to get $1.60 for the calves but after the last two years $1.30 looks pretty good?
The real dog here is the cull cow market? And with the Lakeside strike I see that getting worse? How long are we supposed to hold these old cows?
Now personally I haven't used the downer program where the vet comes out and shoots your old cows and you get $225! It seems to me it is just a scheme to get rid of the old cows and pretend it is all for science and food safety? The other night I saw a show on Malawi where the kids are starving and here we sit on a mountain of beef that no one wants! Something isn't quite right when we feed our cows to the coyotes and magpies while those little black kids are starving?

[rkaiser]

This coming from the man who has supported a cull slaughter since day one ???????

[cattleman2]

F_S: How many packers are there in the Pacific Northwest competeing for those cattle? Probably 1 less than in Canada. Are those cattle bringing $200 head less? I don't think you can say that it just the lack of competition causing the market distortion...