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Kicking our collective butts...

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    #11
    I am a fan of alliances. Difficult to do though, our mindset is not there yet. Ed Miller, Terry Schetzle and some others have formed an alliance to attempt to get a better price from the packers. Hope it works for them and certainly they are trying.

    How can small alliances work in Canada with our packer structure? To be sold interprovincially or internationally all beef must be slaughtered in a federally inspected plant and there are not very many of those and even fewer, if any, that do custom slaughter.

    I tend to think in terms of larger alliances, at least a North American alliance. Have you heard of the Five Nations Conference? Maybe Australia is kicking our butts but their production system is more similar to ours than say South America. At some point cattle producers need to stop thinking of each other as competition and instead work together, form alliances if you will, to extract more profit from the value chain. In that respect it becomes very important when we are thinking of what we can do who “we” is. We presently have a few global packing plants pitting country against country, producer against producer in effect driving down the price of live cattle everywhere. Meanwhile they are laughing all the way to the bank. I think producers need to start forming global alliances but try to get that past the R-Calf boys and others like them who have a much narrower focus. Unfortunately they end up serving the packers interests who seek to keep producers divided and thereby weak.

    What point is there in market development and product differentiation if none of the benefits of those efforts make it back to the men and women actually on the land?

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      #12
      Amen to that. I think you are pretty close to right on an industry scale.

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        #13
        You said you had given this considerable thought. Any thoughts on smaller scale alliances that individual producers could actually form? It has been my opinion that the challenge for this generation of producers is to learn how to work with others, to form alliances, even simple alliances with family members as farms get bigger and there may be quite a few people involved with a farm. And of course alliances with people beyond your family.

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          #14
          Along the lines of value chains this story in the last Western Producer may be on interest.

          It is entitled Value Chain Could Raise Cattle Profits.

          http://www.producer.com/free/editorial/news.php?iss=2007-01-11&sec=news&sto=83

          Grassfarmer might be interested as the story mentions grass fed beef.

          Although I have reservations about these small value chains the story does mention one point that I whole heartedly agree with:

          Begin of paste:

          "Farmers have one advantage over the industry giants, he said.

          Farmers are widely trusted and held in high regard by consumers. When you go to form a value chain and tell a story on a product, the farmer always needs to be a key part of that story."

          End of paste

          If farmers need to be key part of that story then we need to make sure we get paid accordingly and not just a token premium for a specialty product.

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            #15
            That was interesting farmers_son, how can we better control the product than by direct marketing it ourselves though? Any time you build a bigger organisation there is a bigger chance of being taken advantage of. My biggest weakness is the processor I have to use - because I don't know how to process/have a plant. Thus far it has been manageable - we are netting over $1.20 per pound for our fats after processing and delivery costs.

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              #16
              Alliances on a smaller scale.
              We have looked at several ideas, not neccesarily all encompassing.
              Input alliances (Farmers of North America type stuff), machinery sharing, haying alliance, marketing alliance (we are still working on this one to find like minded producers with similar type herds), small branded beef program with custom harvest at a federally inspected plant, etc.
              Basically in my mind an alliance is a formal neighbour agreement, where people work together and share some risk.
              I am sure there are a lot of opportunities overlooked everyday in the name of independence.

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