The price of fats?

[kato]

Just wondering. I check the ABP market report, and it quotes fats in Alberta at 82.20. Is this true?

In Manitoba they are selling for 73 cents. Does this mean it costs $115.00 to ship a steer to Alberta? (1200 pounds at a 9.5 cent discount) If so, we better all get into the trucking business, because a load is worth over $5100 dollars in freight for a 900 mile trip.

No wonder everybody here wants out of the business.

Who says MCOOL hasn't hurt Canadian cattle producers, especially in this province? Bull hockey!....

What are they selling for in Saskatchewan?

[jensend]

manitoba price is probably based on american bids with mcool, freight and everything else figured in. this gives lee and brian a chance to take something extra. cargill high river probably isn't in your market.

[kato]

I don't think there are all that many going south though. Not like before. Our buyer told us there are lots of Americans wanting our cattle, but MCOOL adds 5 cents a pound right off the top to the price, and they don't want to pay that. That's not including other costs associated with segregation and all that.

[jensend]

then your market is just whatever the one or two canadian packers feel like paying. it's not a good situation. we're paying the price for past errors in policy and regulation.

[burnt]

Here in Ontario we have the Quebec factor to contend with. Every week there are loads (30 at times) coming into Cargill at up to 10 cents under the stated Ontario rail bids. Last week when the rail bid was around $1.39, Quebec cattle came in at $1.31. And we don't have a price insurance scheme like they have.

[kato]

So I guess that means that the packers are using the price insurance scheme as a government subsidy to them? Now, isn't that interesting? They pay less, because they can, and it's as simple as that.

Is this going to happen in Alberta now that you have a price insurance scheme? Someone should keep an eye on this one.

[burnt]

Well I've never seen a packer who would pay more than they needed to out of the goodness of their heart. But as far as setting prices goes, I suppose if they
(Quebec) know that the provincial government was going to make up the difference, the selling price means less.