Western Feedlots shutting down feeding operations

[grassfarmer]

It just baffles me why you Albertans didn't phone a family member or friend in Saskatchewan before you voted!

Not much point if they all talk bullshit like you.

[grassfarmer]

So Jeff when they went to owning basically all versus custom did they really own them or was it a captive supply arrangement with Cargill?

[burnt]

Disagree from a position of ignorance. Know nothing about Alberta, nothing about livestock farming, cattle feeding, the beef sector, no skin in the game - had you even heard of Western Feedlots before yesterday? If you don't know the difference between a write off and a right off are you right wing, write wing or even left wing?

I wonder if Ezra and co are working on another media stunt like the hilarious failure of "Bernard the roughneck"?
Maybe fly in Pete the pen rider from his parents basement in Toronto, dress him in cow crap covered stetson and 'kerchief to plead the case.

Now that's funny - the poster here who has drifted around more than anyone else on this board flies in with a two-bit, drive-by sentiment!

[BFW]

they mostly went to Cargill but Western would have retained price risk on the cattle

[mcfarms]

Was hoping BFW would step into this thread and comment , read what he said carefully. I never understood why they went from a custom lot at least partially, nice to have some of your business where you can pencil a profit and let others take the risk. Westerns closure if even for a while will certainly take a lot of money out of the economies of towns like High River , Strathmore and Calgary. I know a lot of families that this is going to really affect. Probably mine too one less player bidding on my calves this fall.

[perfecho]

Saskfarmer...the ND's were the only one that was ready....that's why Prentice called the election. Thought he had it all worked out, even lied to Daniel smith. I would likely be more of a Alberta Party member than anything, I the leader is one who seems to have integrity...but , they weren't ready.
But back to the feedlot situation....still believe their mismanagement left them with little choice, but need to blame something else. It has been a blood bath for feeders, but they have also made a killing at times.

[WiltonRanch]

Saskfarmer...the ND's were the only one that was ready....that's why Prentice called the election. Thought he had it all worked out, even lied to Daniel smith. I would likely be more of a Alberta Party member than anything, I the leader is one who seems to have integrity...but , they weren't ready.
But back to the feedlot situation....still believe their mismanagement left them with little choice, but need to blame something else. It has been a blood bath for feeders, but they have also made a killing at times.

Pot shots aside at the ndp and maybe some bad management on the part of the feedlot, though if they've been in business this long you'd think they would know a thing or two, the feeding industry has lost a piss wack this last turn. Grass guys around here are talking $500 on their stockers. So imagine you're a feedlot pumping barley and sileage, supplements, equipment payments, wages etc and your price collapses that you're maybe $100 over what you paid in the first place. Politics aside this feeder complex is going to be tough for another turn or two so why lose your ass when the friendly govt is going to add another tax or further environmental regs to the point that taking a loss or two becomes a bigger issue. For all of us in this cow business it's only a matter of time before we will be so regulated with animal welfare, safety, and environmental regulations that it will not be worth buggering around with them. Besides it means less willing to take a chance feeding your calves. So what are you left with? Feeding out your own calves? Been there before and if it works why not but more ****ing around. The feedlots have it down to a science and can get cog and conversion down to nothing a farmer could ever think of and all on bought feed. Yes if joe farmer grows his feed and puts it through his calves yes there is some advantage but his yardage and conversion eats that up. That's presently but if things go for shite then it may have to work. I really don't want to feed all my calves again.

[macdon02]

How is it bad management to idle right now? They might be 6 months late but they gave it a chance to turn and it didn't. I've never finished a beef in my life but if competing with an American feeder that's bidding calves in USD minus freight. .... how does that work? Yes the hedge can be done But in an atmosphere where the county and province wants to balance a budget on your back? Hedges don't always work and you can't hedge a tax. I saw sub $2 feed barley bids this morning, suspect it's not the price of feed but the cost of the animal that's idling the yard.

[perfecho]

The one thing that sets Cargill apart is that if they lose on feeding, they likely gain on processing. Don't buy beef at the store, but it likely hasn't gone down.

[Hamloc]

Perfecho I agree with you that Greg Clark of the Alberta party is the best of the bunch right now. But does it matter, yesterday aboriginal groups across Canada and some in the US formally agreed to fight all pipelines carrying oil sands crude. It will not matter how much we carbon tax ourselves into poverty pipelines will not be supported!!!

[perfecho]

Yeah, heard that story and have some pondering to do on that one....maybe they have learned the corporate way and holding out for a big share...???
My question about the whole thing, we got to a certain level of production and shipping with existing pipelines. Why can we not keep this up, keep in moderate, but steady? Only thing I can think of is that the US is an exporter now and use to be our major customer, so perhaps the rerouting is more important.
Think things would certainly be different if we had built refining capacity along with the mining of crude.

[Hamloc]

At todays level of production and shipping we are about 10-11 billion short on provincial revenue, without increasing production and shipping capacity how do you propose to raise that revenue? Over 100000 jobs need to be replaced in the energy sector where will they come from? I think more refining capacity would be fantastic, my guess is that it hasn't been developed because nobody can make money at it. I am sure if industry felt there was money to be made it would happen. If the enviro-zombies won't allow pipelines what makes you think they will allow refining?