Pre-budget consultations online

[kato]

http://www.fin.gc.ca/prebudget-prebudgetaire/1-eng.asp

Here is a chance to vent. At first glance, this website looks as though it's a chance to comment on the economic action plan. (or in the case of agriculture, the economic INaction plan), but when you've filled in the form, it thanks you for your comments on the 2010 budget.

MP's are also looking for input, and are saying so on their websites.

I've said it before, and I'll say it again. It's now or never. Please make an effort to help our situation. The time has never been better, and if we don't step up and speak for ourselves, then maybe we will get what we deserve.

In this world, it's the squeaky wheel that gets the grease.

[perfecho]

Thanks Kato.
Perhaps for more impact, we should be united in our statements,(for this year and all correspondence to gov)such as:
-Competition or price discovery....we cannot survive in the current structure.
-Packer ownership (and any affiliates) of cows/feeders needs to be limited to 2 weeks of slaughter, manipulation of the markets is the outcome of further ownership.
-Age verification and premise ID is great for export markets, but at this point the premium goes directly to the packer.....this could be effective in an open market, not the current market.
-I know many are not in favor of COOL, but I believe we are missing a big opportunity, and lets face it, COOL is here to stay, lets deal with it. In our own country, people don't know where their meat is coming from...this alone would help our domestic markets and slow down the onslaught of imported beef. Just label it Canadian and what age.....the producers have to. Just think of the market opportunity if we labeled Canadian, hormone free, age and premise verified....add a pic of a mountain on it and bingo.
These are only some ideas.....I am willing to give up mine if someone has better, but I believe we should have at least 3 points that would help our market that everyone could agree on....tell the same story. Let's face it, one of the major reasons we are in this predicament is lack of unity

[smcgrath76]

I think on the packer ownership we should
request mandatory price reporting on all
cash and contract cattle. The ownership
thing is too easy to circumvent. Your
brother's cousin's uncle owns a numbered
company that sells you cattle when you are
short...

[kato]

I don't know if making the same suggestions is nearly as important as the number of people who make them. It's the noise that counts. If enough people making enough suggestions, that increases the odds that one or two will be picked up.

I received a reply from the Ritz office today to a letter I had sent, and among other back pats and self congratulations, it contained the following, which worries me a lot.

"It should, however, be noted that although AgriStability provides some cushion from market forces, it is intended to allow market signals to be passed on such that industry takes the needed action at the farm level to improve its long-term competitiveness.?"

I translate this to mean we are being tossed to the wolves. By that I mean that he believes we are on the receiving end of "market signals". Ya, "market signals" that are the result of forces that have nothing to do with the so called market. These are forces that have more to do with politics than markets, and they are also forces that will leave Canada with a cattle industry that is forever changed, and a shadow of what it needs to be when the day comes that people start looking for beef. The infrastrucure (aka family farms raising cattle) will be gone, and replaced with the same corporate factory farming model that has worked so well for the hog producers. I guess that's what the government wants.

He doesn't realize that the cattle business is not one of in and outs. It's a long term thing, and in the long term future we will need the beef. If only politicians could see in a longer term than the next election, this world would be a better place.

[perfecho]

With all due respect Kato, I believe producers biggest downfall is not taking the "same" message to government. What they here now is "noise", different people complaining and “whining”, all with different "fixes" to the problem. Hence, programs like Agristability that sound great to the voting public, but do little for the majority of family farms.
When the automotive industry went to the government, they had a well laid out plan...spoke the same message, requested the same "cure." Banks as well, had it laid out for the purse string holders. Look how quickly and decisive actions were. And yet, producers remain divided and conquered. If we don't know the way to save our industry, how can bureaucrats?
Lay out a plan and execute it, sing from the same song sheet, it is much easier to understand than everyone singing their own tune. Had we done this....together....we would have similar results.....otherwise we continue to hum to ourselves, lots of noise but no voice.
“With $20 billion in sales, the red meat industry is the largest single employer in Canada…..” Astounding! And we (producers) hold the “basics” to this statement, the raw product….the actual product that allows the industry to be the largest employer, and yet we cannot get our sh t together to demand our share of this industry. No one is going to give it to us because we are nice guys. There job is to take as much of it as possible, that’s what they get paid to do. They have plans, they have goals, they have visioning workshops and they all speak the same message…..and we remain divided, each with our own answer.
Personally, I don’t care which song we sing, but it would be heard if we sang it together!

[smcgrath76]

perfecho, that is likely true, it also
represents a real challenge. Getting
the same message from 3 automakers, or 2
packers has to be simpler than 50,000
producers. With current market
concentration, we have more diversity in
our farm groups than we do in our
processors. NFU, CCA/ABP, WRAP, CFF,
etc., etc, etc.
I think we should ask our groups to
focus very hard on finding common ground
to some issues and tackle those. There
must be some things that all groups
agree on. I don't think politicians
care about our 'plight' as much as they
do about solutions that work and can
make them look good.

[kato]

So lets make a list. Everyone chip in their favourite ideas, and we'll distill it down. First let's list a problem, then come up with a solution for that one. Then move on to the next.

Problem 1. Lack of competition.

All the new markets in the world won't help if there are still only two bidders for the cattle.

I think we can all agree on this one.

Now, we need a list of possible solutions.

I'll contribute this one. (It's my pet project, as you guys have figured out by now.)

- Revamp our inspection system to encourage smaller processors to be allowed to grow by doing the following.

1. harmonize the provincial regulations, to free up and allow more interprovincial trade. Perhaps even make a whole new system where the provincial standards would cover all sales to all purchasers within Canada, and the more expensively set up federal system would be for international trade?

2. If the government actually did give the packers more money for SRM removal, it should be portioned out so the smaller processors, who have been hurt more by the rules, get a larger per capita share of the money.

Who's next?

[perfecho]

Agree with "Lack of competition", and some of your solutions Kato. With the growing local markets, I agree that some standards could be lowered...this is a tough one for Gov Officials, but I do agree.
A plan to help initiate smaller processors in large urban areas would also be of benefit.
Along the lines of competition, this will not make a difference for awhile, so perhaps as your 3rd point, and Sean you can educate us on this
"3.Mandatory price reporting on all
cash and contract cattle. "
If this the best to deal with "competion crisis" until we have competition?
"4. Support local food initiatives with finacial resources and modified building requirements"
This may be a ticky one, although I beleive it will be a strong player in the future, not everyone may see it this way....so in or out ?
Under competition, another can of worms, I would like to see what we age verify and premise ID, to be identifed as such for consumers. Don't have to label everything else, but label ours...and let it be known.
"5. Label Canadian produced beef, with the age and Canadian logo."
Would this coever most competition issues.....I am sure Kato can do a better job of wording than I,so please edit.
And yes, Sean, perhaps getting involved with NFU or such...pick one...I would think woudl help.

[kato]

As far as competition goes, our big problem is that in the past, the only real competition that made a difference in what we earned was the fact that the U.S. buyers were bidding on our cattle.

Not beef. Cattle.

This is what kept all the processors in this country honest. Live cattle, be they feeders or fats, had somewhere else to go. This is what really hooked our market up to the U.S. market. This is also what was hurt the most by COOL.

In fact COOL has done nothing to gain higher prices for U.S. cattle producers, yet it has done a world of damage to only two sets of people. Canadian and Mexican sellers of live cattle. It has not hurt Canadian processors at all. It has not hurt U.S. processors at all.

Only us and the Mexican cattle producers.

So, to add to the lack of competition fix, I think we need to encourage our government to play hard ball on COOL, and I totally agree with you that we need our own beef to be labeled here as well. We don't need to do it illegally, as the Americans are doing by insisting country of birth matters, but we can do it in such a way that we take the high road and honour our NAFTA commitment.

[smcgrath76]

I agree with pretty well all of the
above.
as far as I can see on mandatory
reporting...
If we restrict ownership it is too easy
to circumvent through other companies
and/or contracts and still control the
flow. The real power is coming from
lack of marketplace information on what
those contract cattle are worth. By the
time legal proceedings on ownership were
investigated/complete the damage would
be done and the charges would have to be
worth more than the gains by the company
in having captive cattle. Price
reporting is like asking processors to
permanently open their books to the
public, thus taking away a lot of
speculation by us and power from them.
(for the record I don't like the us/them
scenario).

I also think that we need our federal
government to get serious about trade.
If we look at the demographics for
Canada and where we are heading, we
either need to become serious traders or
get rid of a lot of grass and cows. It
is ludicrous that we need to maintain a
legal fund to fight trade challenges
(CCA/ABP) when that is clearly the role
and responsibility of government. It is
ridiculous (although understandable)
that we send nearly all of our
beef/cattle stateside in one form or
another and then let them capture the
value from markets like Japan. It is
ridiculous that we ignore the fact that
there are as many millionaires in China
as there are Canadians in Canada. etc.
etc. etc. In short we suck at trade.

I think we need to ask for more
streamlined regulations and clarity for
things like packing plant approvals, new
product registrations and for
accountability from CFIA.

And finally I think we need to ask for a
real risk and disaster management
program that is not adjusted based on
the budget of the day (see current
situation with CAIS reference margins).

[smcgrath76]

Forgot to mention, we also need a real
investment in research (both theoretical
and applied).