How To Beat Cool and Make $200 More Per Calf.

[per]

F_s, sorry to be presumptuous. I posted a reply earlier but must have hit reset instead of submit as it never showed up. Your train of though makes sense and does point out the ridiculousness of the protectionist policies of our neighbour. As Willow mentioned, we are not immune to silly policies as well. The problem with your plan is that the rules seem to be quite fluid and just when it starts to pay off they get changed. My wife and I have seriously looked at opportunities south of the 49th in the past. Moving down there would make sure you were on the right side of the rules as they stand now. If you were to consider such a shift, New York state had the most production capabilities for the cost of an acre. Plus there are an abundance of good universities for the kids and grand kids and lots of direct to consumer opportunities.

[farmers_son]

What we are most likely to see happen is the Americans will realize the opportunity and come North to buy as many young bred heifers and cows that they can get their hands on to be calved in the U.S. COOL will work for them not for Canadians.

What this will do will hasten the decline of the Canadian cow herd. The term “perfect storm” was tossed around lightly in the past when referring to the challenges facing our industry. I think the worst is still to come. I wish that were not true but I am afraid it is.

Bottom line a weaned calf is worth $200 Canadian more in the U.S. than in Canada. That is fact. Irrespective of the causes of that differential, basis or “perfect storm” (whatever you want to call it a rose by any other name is still a rose) simple economics will either drive the majority of our present cow herd south or those cows will vanish from prairie pastures if there is no room for them South of the 49th parallel. It will not take long. Three years and you will not recognize the cattle industry in Canada.

COOL is a market access issue. Market access is critical for the cow calf industry. And market access is negotiated between governments not by producers. If our government does not suddenly take an interest in the cow calf industry the hand writing is on the wall for the future of the Canadian cow herd. However I am seeing a Government obsessed with CWB issues and the relevant Ministers do not have the time of day for cows.

What will probably happen is Government will wait until its too late and then negotiate reduced access for Canadian cattle similar was done with softwood lumber. Sorry I cannot be more optimistic.

[grassfarmer]

All the more reason for Canadian producers to look to markets other than the US for our future beef sales. If we can tie into higher value markets elsewhere the fact that we can only earn US price less basis (or CDN discount whatever you like to call it)becomes less important.
I question how many US producers will rush to buy Canadian cows - their own herd has been shrinking and is also dominated by low to non-existent long term profitability and aging producers.

Yes, COOL is a market access issue but in reality "market access" is negotiated between governments influenced very strongly by the packer lobby. The Federal Government has certainly been notably absent from any type of worthwhile intervention in the beef crisis but you have got to remember that Gerry Ritz, current Federal Ag minister was the individual whose vote defeated the motion to fine Cargill and Tyson $250,000 a day unless they opened their books to the Commons Committee back in 2004. Who do you think is pulling his strings?
On the other hand it has been good to see the Alberta Agriculture department take a huge interest in the crisis in the beef sector over the last year. I would think their time and effort spent on this sector of their portfolio will be unprecedented.