NFU REPORT

[agstar77]

Maybe you could get retiring execs from GM to run the CWB, GM used to be a big corporation. Competence doesn't seem to be abundent in the private sector.

[Kodiak]

Prior to entering the building Mr. White talked about the importance of the CWB and its single desk bringing real value to farmers. Now that he's on the inside, when its value is scrutinized or benchmarked all we get is the same old predictable instantaneous press releases we've always gotten. The assumptions were invalid. The numbers were too simplistic. The premise was flawed.

Any fresh new perspectives that could have been brought to bear, any objectivity that comes with a different background has taken a back seat - replaced with the same old pattern that has existed since 1998. Anyone of us could write his press releases for him. We've heard it all before.

Parsley's (qand other's) no nonsense questions about overhead reductions, improved efficiencies and accountability? Nowhere have I seen even an acknowledgment that that's part of the job. Only defensive reactions to the legitimate questions anyone dares ask.

Where's the vision? Where's the leadership? Where's the change?

Puppet strings? Yes, they're being pulled alright.

[bucket]

They already have execs with the same mindframe as gm running the cwb. Why do you think the comments you read are being written. The ceo's are useless at both corporations.

And as far as giving anyone a severance for underperformance parsley - thats bloody nonsense.

[agstar77]

And who would you appoint to run this ship? The Gene pool seems to be limited.

[Kodiak]

The gene pool is not limited. I think it’s just that anyone with the smart genes knows the ship is sinking, and aren’t interested.

The problem is structural. Dramatic re-engineering is the only thing that will keep it afloat. Much more flexibility in the design is needed - plus an off-ramp. When, or if, the Feds and the BOD ever recognize that, the CWB will have a future. Competent management will be found. But if neither the government nor the BOD does anything with it, it will drift aimlessly about and eventually sink under the weight of controversy and irrelevancy.

[kato]

I think if we sat down and were honest with ourselves we'd say that we've known the real problem for a long time. It's just that up to now we've always found some way to work things around and pull rabbits out of our hats. We've been lucky so many times, like when the dollar tanked, and low grain prices masked just how vulnerable we are.

The plain truth is that what we have now does not work.

So what do we do? The more I think about it, the more it seems like the best way out of our troubles is for us to do it ourselves. We've seen what big business, and their buddies in government can come up with to blow new producer plants out of business. It's the same way they killed the fairly large Canadian packers that were here when the Americans moved to Alberta. They will do it again whenever they see a potential competitor.

I think Canadian cattle producers need to take the industry back one fat steer at a time. Quietly, and under the radar. People like Randy K and grassfarmer have already started doing it, and we need more cattle to go directly from the farm to the consumer. There has never been more interest in buying directly from producers, whether meat, fruit or vegetables. The time is perfect to capitalize on this.

Any overt move to set up a large operation will be a target for the Cargill's of the world, and would get pounded. However, if the culture of this country became one where consumers could connect easily and directly with producers, there is a possibility that enough cattle could come out of the corporate control that the market would not be so easy for them to manipulate.

We need to be front and center of the "Buy Local" movement. We need to encourage it, and participate if we can.

We have small abbatoirs all over the place in Manitoba. They've all been around for years. They have the skills to produce a processed product that's light years ahead of the stuff coming out of the big plants. Beef that's processed the way it's supposed to be. Hung for the right length of time, and cut to order. This is a huge advantage that we're ignoring. This would be a good direction for our producer organizations to focus on.

How much better for the economy if local cattle are processed at one of the many small abbatoirs that already exist in this country, thereby helping the local economy with that spinoff money. Instead of pumping millions in government and our checkoff money into large projects doomed to failure, we should be putting smaller amounts into smaller existing slaughter facilities that have been in business for years and are staffed by people who have experience in the business.

Money should be invested in inspection services and upgrades made to bring local facilities up to federal standards, so that the beef from these plants can find a home anywhere in or out of the country. Make it simpler for these plants to move the beef, and we may find them bidding on our cattle in competition with the big boys. Being closer to the final market could be the advantage they need to make it work, and it would all be under the noses of big business. These small plants can form business relationships with local buyers that the big plants just don't have the time or connections to make.

I know not everyone wants to get into the retail business, and everyone likely shouldn't. Individual cattle producers wouldn't have to get directly into retail if these smaller plants were allowed to function and expand.

If we had a business climate that made it easier for those who do want to go to retail to do it, it would have the effect of making things better for all of us.

Just my thoughts....

[Sawbones]

Kato I know there is a market for what you propose but in reality it is very small. The capital cost of processing and marketing a few head is too high. There is a lot of merit in having mid size plants that can process animals within a smaller geographical location (within 4 hours trucking or 250 miles) This would be better for the animals and the local economy. Yes we could warehouse them in huge feedlots in southern Alberta but we can already hear the sounds of the environmental impact studies and the cost of moving grain thousands of miles. We have an opportunity to take back and even expand our industry. You have a plant being built in Winnipeg by producers. There is also a viable plant in southern Saskatchewan at Neudorf. The Balzac plant can be restored. These plants would be large enough to be efficient (300-500 head/day) and yet responsive to producers as well as consumers. You can't fly low enough to get below the radar of the major packers. The major problem is getting producers concerned enough to pull together to actually address the situation. These plants can be operational at a finance charge of less than $20/head. It will however take commitment and a huge operating fund to get the project started. It will also take a coordinated effort on the part of a number of producer groups.

[parsley]

LW,

I'm afraid I'm not diplomatic enough to be in the ag minister's small group, nor am I interested in fawning for favor or placement. But the voices carrying the message from the West needs their vocal chords (not cords) severed because the music is out of time. Pars

[bucket]

Well anyone that has a genuine interest in doing the best for farmers would be a fine candidate. Let's see, if you gave a shit about the job you were doing and the morons below you didn't would you:

a. Let them write submoronic press releases and sign your name to them.
b. Fire them and fill them with like minded hard working individuals.
c. Lower yourself to their level and feel good about becoming incompetent and wonder why people want you displaced.

Its not hard to motivate people given the current economic conditions - do your job or find a new one and the best of luck to you.

Its too bad white a lame duck useless ceo. His qualifications should have allowed him too evaluate what is going on in the canadian grain industry and make improvements.

[Kodiak]

It would be interesting to compare the Board of Directors’ list of deliverables and the CEO scorecard to a similar list and scorecard that I might come up with. The CEO’s failures on my list could be brilliant accomplishments to the directors.

But regardless, the tactic of instant condemnation of each and every outside assessment of performance looks like desperation. And for the CEO to be coerced - or volunteer - to get into media arguments lacks professionalism. Companies first of all usually don’t engage in media battles. And secondly, if they have a need to make a public statement they have designated spokespeople for that, and 99% of the time it’s not the CEO - or members of the Board of Directors. We all know they’ve got plenty of people in the PR department.

LWeber - as far as the Minister and his advice; I’d be surprised if he asks for any, and if he does, I’d be surprised if he listens. The evidence that he isn’t getting any or listening is in how the CWB issue is being handled by Ottawa. In a word - ineptly.

[grassfarmer]

Sawbones I would very much agree with your comments.
Kato I like being in the beef retailing end of things through direct marketing but I don't think the whole industry can go this way. At best I think there are direct marketing type opportunities for a maximum of around 10% of our domestic market. That leaves thousands of cattle a day going through "conventional" channels. To have a healthy beef production sector we must find solutions for those cattle - we must change the status quo of commodity beef production so that producers get a fair return.

[TOM4CWB]

BOYS BOYS BOYS...

If the majority of the B.O.D. of the CWB required you to do what White has done... HOW COULD YOU DO ANYTHING ELSE?

uNTIL the BOD are fixed... noone can do anything to even start the process... let alone overhaul the CWB.

If the 'majority' rules... White can do nothing more than he has done... defend the majority position on the CWB BOD.

What do you expect him to do... shoot himself in the foot... and get instantly fired?

As far as I can tell.... White has given the CWB BOD their own way... the 'single desk' majority have obtained the results they set out to achieve... almost perfectly.

WHY not give these guys enough rope to hang themselves?

[smcgrath76]

I own some hooks in one of these aforementioned and as such I can say that developing and getting a plant going with a market for end product is anything but easy (particularly in the complete absence of government support). It takes a certain scale to be able to pursue markets and have enough critical mass to negotiate all of the legal hoops and hurdles for export, etc. Take the amount of cash you think you need and multiply by at least 2.5. One of the reasons we purchased shares is that we were trying to increase the price we recieved for our calves and to develop a pricing mechanism that reflected value at retail.
This leads to another harsh question, what are we doing either individually or in groups to make our cattle/beef worth more?
A cow is just a cow and a calf is just a calf and in many cases is lucky to recieve the average of the US price less basis. Not to be facetious but what are many of us actually doing to make our product worth more to the marketplace?
Marketing is Product, Price, Place, Promotion. Do we have a superior product, the ability to deliver it in a superior way, and a good backstory? Can we back up our claims? Or do we compete strictly on being the lowest price (like now)?
Everyone gripes about the price, but few do anything to change it. I feel that this discussion about plants, etc. is part of the solution, but we are also going to have to realistically segregate pricing very harshly on cattle that don't do our customers any good, and actively reward value (cattle that can be marketed and meet specific end product requirements).
I can readily come up with a long list of things that we do that add value to our cowherd and our calf crop, but I can think of a lot that complain about the price they get that do nothing to change that fact. Based on how cattle are priced "on average" I figure roughly 1/3 are undervalued, 1/3 are hugely overvalued and 1/3 may be close depending on the day. I mean this in relative terms, as I don't have any argument with the floor price being too low.

[bucket]

By the time they hang themselves the entire western canadian grain industry would be screwed.

[grassfarmer]

Some good points Sean, it looks like the average producer at the moment is all talk when it comes to improving the value of their calf crop. It's easy to claim "we" have the best beef in the world while dumping calves off at the fall sales with no idea (or interest) in how they perform in the feedlot or yield for the packer. There is a huge learning curve ahead for those who want to be more involved in selling a good beef product through some sort of alliance or integration program with processor capacity. I think programs like Canada Gold are the beginning of the learning process - and one which can be accessed by most producers and without the need for them to buy kill hooks.

As an aside I would point out that although "Marketing is Product, Price, Place, Promotion" may reign in mainstream production systems we find that once you start direct-marketing beef to consumers the requirements for success are different.
Our customers rate "Service, Product - perception of health benefits, Product - actual quality of eating experience, Trust and Price" in that order.