Does Generic Advertising Benefit Producers?

[grassfarmer]

So what are you saying f_s? is it game over for Canadian producers? do you suggest we just give up and go find an alternate job?
I would dispute your comment "I do not see where as producers we have embraced that change, indeed all efforts up to now have been to maintain the status quo." I think that is the position that ABP thinking and lack of democracy has led to. If every beef producer in Alberta had voted for or against the BIG-C proposal I feel Cam would have been given a clear mandate with his proposals. However the "wise guys" at ABP managed to prevent democracy prevailing by absolutely refusing to allow such a vote. A great opportunity missed.

[farmers_son]

Is it game over for Canadian producers? We cannot take our cattle industry for granted. It would be wise for producers and our governments too to ask themselves just how long can the status quo continue before Canada no longer has a competitive cattle industry.

It is folly to just sit back and think all is well, that we do not have to address industry concerns like low producer returns. Now some would say that if we had not been spending millions on generic advertising of beef that producer returns would be even lower. That may or may not be true. But at some point the question needs to be asked if there is a better way to spend $12 million a year.

I am going to put out an idea that is very, very controversial. I have heard a lot of talk of building a producer packing plant to compete with Cargill and Tyson. Something I have never heard discussed is what would happen if producers, as a whole, bought into to a packing plant or packing plants that shared ownership with these big players. Co ownership. It is not as crazy an idea as it might first seem.

[rkaiser]

Not as crazy as bringing the idea to Cargill or Tyson. LOL Always knew you were a dreamer old boy.

[grassfarmer]

Would you care to expand on that idea farmers_son? I'm curious how you would see that working. My first reaction was like the old saying "you need a long spoon to sup with the de'il" but we do need to consider all options.

[cswilson]

I think everybody is a little too hung up on the-we've got to own a packing plant-to be honest if you build one big enough to compete with the big guns you have to do business like them to survive. In our town of 5,000 we have two superstore groceries but we also have two private butcher shops that are doing very well. Why not form a holding company-purchase some portable abbatoirs or else build some smaller ones and set up shop in the midsize towns all over the west.You'd move alot of product and fly under Cargill's radar. I know most small towns are open for business and have some buildings that would work. I think it's better to start small and grow rather than build up big expectations and fail.Unfortunately good intentions and great ideas don't put kids through college or pay off bank loans. Good intentions and great ideas do if they are approached in a business like manner-simply thinking I'm doing the right thing-now show me the money often doesn't. As for the beef advertising I don't see anything wrong with it-maybe I'm just too dense to see the greater evil that seems to lurk everywhere in the cattle business.

[rkaiser]

If you want to call "it" a lurking evil fine, but the truth is "it" is the reason that you and I struggle to get those kids through college and pay those bank loans. "It" is the reason that even you are thinking about alternatives. If "it" was all fine, we would be moving ahead like almost every other industry in the world besides primary agriculture.

I love your idea of supporting or collectively owning hundreds of smaller processing plants, and even meat shops. The whole spread out and lie down approach is truly a good one. Might even be an easier sell to ABP/CCA then the one plant proposal.

And then, I would agree that generic advertising would do all of "us" some good.

[cswilson]

Ohhh I think there's more than 'it' to blame-but the coffee shop blames 'they' too lol. I'm saying dreams need some reality to be fulfilled. I don't think if Cargill and Tyson disappeared the college fund would automatically get topped up and the loan get paid off lol.

[rkaiser]

Of course not disappear Cory, but replaced with a more ethical entity ----- yes.

Can you add to your proposal to replace even part of "it" or "them" with diversity in small town Canada? I think that is an area worth exploring.

[farmers_son]

I liked Cswilson’s idea of smaller packing plants the first time he proposed it and I still do.

There is nothing wrong with generic advertising but what we do need to think about is there a better way to spend that money. Maybe there is and maybe there isn’t.

There is a difference between the milk and egg people advertising versus beef advertising where we import quite a bit of beef into Canada. We do not have the same mechanisms in place to get paid back for the advertising dollars we spend like the supply managed sector has.

I am sure you do need a long spoon to sup with the de'il". Another saying is keep your friends close and your enemies closer. Basically we need to think out of the box and to consider all options. Cargill does partner with various players in the industry. I tend to like Cswilson’s idea because I think it would be an easier to get buy in from various industry players, including government.

[farmers_son]

I should add I agree with Cswilson re Cargill and Tyson. I do not want them to disappear. I would like them to pay a fair price for live cattle. Without better access to the U.S. market there is nothing to force them to bid up for our live cattle.

Four years after BSE we remain completely dependent upon restricted access to the U.S. market to provide competition for live cattle in this country. We can advertise till the cows come home but we will not get paid a fair price for our live cattle without competition.