ABP Strategic Plan

[cowman]

randy: Out of curiosity, how much does it cost to custom feed a cow per day?

[farmers_son]

Rather than see the Canadian cowherd shrink back to a domestically sustainable level I think producers would be better served if Canadian packing plant capacity increased to serve available domestic supplies.

Cargill and Tyson are in the business of creating value for their shareholders, not to compete with one another. Competition serves to drive profit out of any business. Therefore it is not a stretch to understand that Cargill and Tyson would seek to limit competition in any way possible. One way, and it is only one of many ways to limit competition's effect on the bottom line, is to cooperate to reduce the costs of their major input; namely live cattle.

I would point out that if large supplies of cattle were an issue in this country and we had a functioning market for live cattle we would see corresponding reductions in the wholesale price of beef. Such is not the case. Granted the USDA trade barriers are part of the problem. However that ignores the larger problem of Canada’s continuing lack of domestic packing plant capacity and any kind of alternative in this country for producers being forced to sell their live cattle to Cargill and Tyson for artificially low prices. If we could create competition in this country for live cattle it would drive up live prices. We may not be able to eliminate all the basis between Canada and the U.S. but even if the basis could be cut in half it would create a new profitability in our industry that is badly needed.

[rkaiser]

Cowman - It probably costs a lot less than what I am paying, especially with my little black hairy beasts. $1.50 per day is what I pay. The bonus for me this year was an open gate rather than one of those trucks we're talking about on the other thread.

Making a move this year back to our little paradise North West of Ponoka, thus the custom feeding. Will be a good year to do some math however, as we set up our new place and decide whether buying equipment etc. is worth while.