Mr Butter's letter

[grassfarmer]

First of all I must comment on the heading "Re: An open letter to...." - a masterful case of proof reading as I'm guessing the letter was emailed among directors before publishing. Very professional opening....

A few of the points issued raised caught my eye:
"ABP and our producers welcome the fostering of market-driven branding and diversification initiatives." Hmmm... that didn't seem to be the case with Canada Gold now did it?

"How will the Government ensure that funding provided by the ALMA does not unduly influence business and market decisions?" - I don't remember that being a concern raised by ABP when they welcomed the Government bail out money being paid to the established packers to expand their capacity a while back.

"Will the Government be requesting or requiring access to check-off funds for ALMA, who will pay these check-offs, and how will these funds be collected?"
Well I can see the obvious concern of ABP in this question - will they have their purse strings trimmed?

"Does the Government have supportive data to show that the benefits created by the traceability system actually exceed the costs of implementing it" - This is surely reductionist thinking at it's worst. Traceability is non negotiable - it is a cost of doing business in the beef world post BSE, get used to it. Equally you could ask the Government for data to show the cost of not having a traceability system in place.

At the end of the day these are minor points and the rest of the letter was fluff. It appears to me that what is really going on here is political gamesmanship by ABP. Making a huge issue out of something that is really not all that radical is a convenient distraction for an organisation that has got itself in a big mess this last year or so. Being the sole levy funded beef organisation granted ABP the uncontested ear of the Alberta Ag minister but they managed to put themselves offside with Minister Groeneveld by arrogantly refusing to work with, or contribute positively, to the B5 meetings called by the minister.
After a failed attempt to oust the sitting Ag minister at the time of the last election and replace him with their "own" man - Mr Doerkson the ABP were feeling even more sidelined.
It has become obvious to all that ABP is of touch with producer interests and it's days as the sole representitive group listened to by Government are gone. Facing increasing calls for a directional levy to allow producers to support organisations that better represent their interests ABP are running scared of the Fall Producer Meetings and the backlash they face. So their solution appears to be to latch onto the ALMS, fan some flames of opposition to it and hope that it wins them back some producer support. And it will probably work - faced with a little extra effort or work most producers will grumble, its always easier to do things the way you did in the past. Good job that the pioneers that fenced in the open range didn't resist change just for the sake of it, or the guys that built the feedlots, or brought in the exotic cattle...
So I anticipate the Fall Producer Meetings will turn into a P M session about AMLS - a convenient distraction to what should be our real business at hand - deciding the future direction of our industry and who we wish to represent us. Another year when we could be making progress wasted.

In the Grassroutes read the article by Rich Smith, first paragraph, "Minister Groeneveld stated that Alberta's livestock industry was facing significant challenges and needed a major and fundamental change. In order to create a sustainable and competitive industry, the Minister said that we need to do things in a radically different way. The Government intends to act as a catalyst for these changes" - How can you argue with that? what the minister said is absolutely correct. The fact that the Government has to act as a catalyst is an indication of how poorly producers have been able to work together to facilitate change on a voluntary basis. As the sole levy funded producer group that failing reflects very poorly on the leadership of ABP.
Time for a change. That is my opinion.

[smcgrath76]

I was interested to note the BIA (Beef Industry Alliance) group that has formed in AB.
http://www.canadiancattlemen.ca/issues/isarticle.asp?id=89152&issue=09052008&PC=FBC&story _id=&link_targ=DailyNews&link_source=aypr_CCAT
They are WSGA, ACFA, BIG and the Feeders Assoc. I suspect that they would become one of the primary candidates to receive any future directional checkoff.
Right, wrong or indifferent it certainly is interesting times in AB.
Personally I hope they clean up some of the interprovincial trade issues at their ministers meeting with SK in Lloydminster this week.

[Sawbones]

Time for a change absolutely but I don't see one in any of the solutions. We couldn't BSE test because we couldn't show that it opened up more markets but we are to give up our proprietary rights without compensation as to premise ID and age verification without any assurrance of increased profitability. We are merely increasing the profitability of the packers as they do not have to pay to source these cattle. We know the trickle down affect does not happen. We have also seen the additon of 30 new positions in AB ag to help us fill out our forms. That would be at least $1.2 million in wages and more with the addition of office space and expenses. That sum would have paid for the rent on a slaughter facility where value chains could actually have been established. We do need change but the fundamental change and one that is not accepted by our government is that until the packing situation is changed, we will never have a value added sector and will only produce commodity products. There will only be two value chains and those will be XL and Cargill even if they carry the Canada Gold label as it is nothing more at this time then a supply contract.

[grassfarmer]

Sawbones, Nobody believes stronger than me the need to change the current packer control stranglehold. However your comments about CanadaGold are simply not true. If you are familiar with the concept of CanadaGold you will realise that this is in no way a supply contract to the packers as the packers will never own the beef. They are essentially being employed on a custom basis by CanadaGold. This may not redress the packer control problem for the whole of Canada but surely you can see it is attempting to start a new way of doing business and for that the founders of CanadaGold should be commended.

[Kathy]

As I said in my earlier thread, the AB Livestock and Meat Strategy is going to be implemented under the AB Animal Health Act visa its "regulations".

This act, as it is written NOW, is illegal!!!! UNLAWFUL!!!!!

The Minister can not hold powers to restrict unknown and unspecified persons under a law, unless those exact persons are identified in the ACT.

Section 9 of the Animal Health Act gives the Minister unprecedented powers. It states his powers will be defined in the regulations. I'm sorry, but our MLAs have seriously dropped the ball here. Those that manage the business and legal affairs of this government are pulling a fast one on the ranching community.

ALMS might as well stand for the
Alberta Land Management System.

With the stroke of a pen, land owners in Alberta that raise livestock, will no longer have control over what they can do, or raise, on their own land. We will be restricted and controlled (reigned in - right Will V.)

Then when we are reigned in, the oil companies, mining companies, electricity generation companies, including transmission and pipelines corporations, will be able to move in on the 'desperate' surfs of the land who cannot raise or sell cattle without 'permission' [a license] from the Minister of Agriculture.

If you do not comply with these illegal and oppressive regulations; if you don't supply exactly all the required information, and jump through all the right hoops, you will become an un-licenced red-neck. This will result in your going bankrupt because nobody will be allowed to buy your farm product without ending up in trouble also.

Who elected Jeff Kucharski GOD of the cattle industry.

Come on ranchers, can't you see how this "globalization" mechanism is going to completely remove your right to use your property as you see fit.

The ALMS is a load of crap designed to take take take from the rancher, for the benefit of the secondary meat producers.

Combine this land grab with other bills in parliment (C51) and the legislature and Alberta looks alot more like pre-1945 East Germany and Russia.

News article from Lethbridge paper confirming application of ALMS visa the "illegal" AB Animal Health Act:

Age verification for cattle key to future success of industry.

By RIC SWIHART
Aug 23, 2008, 04:58

Mandatory age verification for Alberta cattle is coming.

Opposed by Alberta Beef Producers and the Canadian Cattlemen’s Association, age verification is one of the keys to the future of global cattle marketing, an industry spokesman said Friday.

Jeff Kucharski, a career global market development specialist who worked for Alberta Agriculture, said the Alberta Animal Health Act will be changed this fall or winter to make age verification mandatory for all provincial cattle.

It is part of the mandate of Kucharski’s new Alberta Livestock and Meat Agency, created from the Alberta livestock and meat strategy developed after extensive consultation with all levels of the provincial cattle and meat marketing value chain in the past year.

Kucharski, chief executive officer for the agency who worked for a major Japanese food retailer for two years to learn about Japan’s food consumer trends, said a growing sector of the global cattle and beef importing market is demanding increased animal health assurances and food safety standards.

The first stage of meeting that standard, in addition to individual animal age verification — all calves born this year should be have birth dates recorded to match animal identification — and include the legal description of the farm on which they were born.

That news is music to Picture Butte cattle feeder Rick Paskal, a strong supporter of age verification, cattle traceability and optimum food safety standards.

Paskal was informed by Tyson Fresh Meat officials this week the firm, one of the world’s largest meat processors, will stop buying Canadian slaughter cattle at all its U.S.-based packing plants by Sept. 15. Tyson is in the process of selling its Lakeside beef packing plant, Canada’s largest, to Calgary-based XL Packers.

Gary Mickelson of Springdale Ark., Tyson’s head of communication, said late Friday, “It’s premature for us to say whether we will make any changes in the way we buy Canadian cattle for our U.S. operations.

“However, we can tell you our buying practices will continue to be driven by market values for live cattle and finished products.”

Paskal said only Tyson’s Pasco, Wash,. packing plant, about 860 kilometres from Lethbridge, will continue to buy cattle from Canadian sources.

Paskal said Tyson is gearing up with the introduction of the U.S. Country of Original Labelling law Oct. 1, and buying only American cattle after Sept. 15 will clear the marketing chain of beef from Canadian cattle. Most fear American retailers will buy only American cattle and beef to eliminate the need to segregate that meat from beef cuts produced from cattle from the U.S., Canada or Mexico, or beef from Canadian market cattle slaughtered in the U.S.
Paskal said Canada will retain that specialized slaughter option only if producers can supply enough age-verified and traceable cattle to allow Tyson to compete strongly in the global market, especially Japan and Korea which have tightened their food import regulations on food safety.
Age verification will allow a packer to tell a customer age of the animal that produced the beef it is buying.

Most of the consumer concern is Canada’s 14 positive cases of bovine spongiform encephalopathy or mad cow disease since May 2003. BSE is not found in animals under 30 months, and some countries like Japan will buy beef only from animals under 21 months.
Paskal said if Canadian producers miss this marketing opportunity and fail to produce age-verified cattle for Canadian packers, the Canadian cattle and beef industry will shrink to a domestic-only market because it will be shut out of most global markets.

Kucharski agreed, claiming age verification and farm of origin will be followed by a cattle traceability system that will target every location an individual animal has lived, including place of slaughter. In the event of a disease outbreak, animal health officials would be able to trace affected animals back to the herd of origin to more quickly control the spread of the disease.

Kucharski said the new animal health and food safety measures sought by the agency will not be mandatory immediately.

While there is opposition to some aspects of the agency’s plan from ABP and CCA, Kucharski has found discussing the issue with producers usually nets converts.

But if producers don’t change, they will miss out on their second provincial payment from the Alberta Livestock and Meat Strategy announced earlier this year by Alberta Agriculture Minister George Groeneveld. All producers in April shared in a payout of $150 million from the $300-million strategy fund.
To receive the second installment, set for January 2009, producers must show they are on their way to using age verification methods.

“The Alberta government spent about $2 billion in the last five years on the beef industry alone,” said Kucharski. That money mainly went to producers, but some was given to feedlot operators and processors. It was in addition to farm support program payments like the Canadian Income Stabilization Program and Alberta Farm in Recovery Program.

“Post BSE, what has that money done for the industry?” asked Kucharski. “The industry is still in a very difficult situation, both beef and pork.”

He said tougher times are in hand with the booming value of the Canadian dollar and record high feed and input prices for producers and the lack of labour and the cost of labour for processors.

He said the new strategy is the way to boost the efficiency and competitiveness of the Canadian cattle and beef industry.

Kucharski said it isn’t as much Canadian producers and processors earn a premium price through the new strategy as it is gaining sustainability for the large cattle industry built up in Canada, especially Alberta, in the last 25 years.

The Alberta Livestock and Meat Agency is slowly building its board of directors, said Kucharski.

Joe Makowecki of Heritage Foods in Edmonton is the first chairman.
Directors named so far include Kee Jim of Feedlot Management Services near Calgary, Charlie Gracey of Toronto, former general manager of the CCA, and Ted Bilyea of Toronto, a former vice-president of Maple Leaf Foods and now an international business consultant.
“I expect further board members to be named soon,” he said.

The board will continue to work with industry, recognizing the role of government is to create the environment for industry be successful. It is up to industry to take advantage of that opportunity by the way it is managed.

“It means some change,” he said. “Change is not always easy. People do not like change. If we don’t make these changes, we will see a much smaller industry than we have today.”
© Copyright by Lethbridge Herald.com

[grassfarmer]

That's a perfectly logical and sensible news story you posted Kathy but I don't see how it ties in with your views in the rest of the post?

[smcgrath76]

I also thought the story was fairly balanced. I am pretty sure the government knows where to find me, they send me tax notices, GST notices, General program information, etc. all through Canada Post. Even before we were premise registered CFIA was able to contact us in May of 2003. Also, our land ownership and locations are registered with the land titles office, etc.
I do share your future concern with licencing, etc. more from a cost structure than a control perspective. I think producers are so busy producing most of the time that they don't have time or energy to focus on industry or market development. From my perspective it boils down to producers working/or failing to work on the business of beef, rather than in the business of beef from a macro level.

[Kathy]

The connection to this thread is that ABP and all the other organizations are failing to identify a threat to our sovereignty over our own privately held land and businesses.

Demonstrating that the AB Animal Health Act will be the vehicle for implementing ALMS is to notify all those that ASSUMED that the AB Animal Health ACT applied only to vets, not the rancher.

My MLAs secretary made the same assumption when I phoned about the changes planned for this ACT, she stated, "Oh, the Veterinary Act"... The MLAs have passed an enabling bill that will apply to alot more than vets.

Our representatives in the cattle organizations should be asking our MLAs if they understood what they were passing last spring. Apparently, they didn't.

Lets see the implementation of "licenses for ranchers" put through in an independent, single purpose bill... and we will see if it passes. The legislation and process as it stands now is deceptive.

[wilagro]

About time we exercise our "license" to turf these government controllers out on their collective ears.

What they are attempting is worse than communism.

[grassfarmer]

I guess Mr Butters must be too busy to reply - getting ready for the week ahead no doubt.

[coppertop]

With respect to this topic, there will be a PRODUCER organized information session at Lindale Hall,on September 24th at 7:00 PM. ( north at the junction of Highway 39 and Secondary Highway 759, then right at the Lindale sign ).
ABP and Alberta Agriculture representatives have confirmed their attendance.
An group of producers have provided both ABP and Alberta Agriculture with a list of questions similar to ones that have been posed on this site. These questions will be the basis for the meeting, and an independent moderator will field the questions from producers.
It is unfortunate that the timing of this meeting will likely be during harvest but the topic and impending regulations make it crucial to hold the meeting now.
Producers from all areas of the province are most welcome to attend this meeting.

[Kathy]

I never go away, but of course the scheduled meetings are exactly when I will be in Nova Scotia for a week attending a conference sponsored by the Physicians for Global Survival.

The newspaper ads are stating that the producers must "sign a declaration" to get the second cheque, as well as all the other hoops. AFSC does not have a copy of this document yet, however, I suspect it is the same document that they want you to sign for AgriStability.

I intend to ask some of these questions on the Derry Brownfield show this friday 9-10 am.

I also noticed the newspaper ads do not say what you have to do to obey the LAW.... just what you have to do to get the second cheque.

[sagewood]

We do, for sure, live in interesting times in Ab. I have said for some time that 'licensing' will happen to those of use in the beef industry and that the BSE thing was just the foot in the door that the government and regulatory agencies needed to start to direct how and what we raise on our grass. As a retired purebred breeder, I have never had a problem with age verifying--knowing sire and dam--keeping health records and so forth and can produce my health and calving dates back to the beginning of time and I have no problem with showing them to anybody who may be interested. I have no problem in welcoming people to inspect my operations or my cattle, be they other producers or government types. My concern, as is Sean's, is that the licensing of either myself or my facility will be onerously costly and again, it is those of us in the cow-calf sector who will pay the increased cost of supporting inspectors/office workers and so forth. So much of the time these people have little connection to the land and have little understanding of the practical needs of an operations as opposed to the 'book' practises. Everything looks possible when laid out in a classroom--sometime putting those ideas into practise needs serious 'tweaking'. I know I sound defeatist when I say that I do believe that we in Alberta will be 'licensed' to raise livestock and this is coming in the not-too-distant future. I look forward to futher posts on this issue.

[coppertop]

Alberta Agriculture is offering packages to a significant number of it's staff in order to come up with the 40 million it needs to start up the Livestock Secretariat. They readily admit that they will be hiring new staff with less experience, which concerns me when this new staff will be the ones on the front lines of this entire new livestock program.

The proposed regulations are onerous and will cost producers time and money, and some of them make no sense at all.
Scanning cattle as they are loaded on trailers at the farm, then again at auction markets, again at feedlots and again at the slaughter facility, is overkill ( pardon the pun). Particularly when anything going across the border is mouthed .

All the above is going to certainly be a make work project for many people, all on the back of the cattle producer whose back is getting very sore from carrying the load as it is.

[grassfarmer]

Sagewood, yes we will see licensing at some point - it's the way of the world and not just in agriculture either. Accept it as the cost of doing business in the future and move on. I don't understand this P M attitude led by ABP that wants everybody to sit around wringing their hands in despair about this new development. (Well I do understand ABPs angle - it's a convenient distraction from their P.P. performance that will see them lose their levy but I digress...)
Look at the opportunities - if you are going to have to do this work anyway why not get it done, call CanadaGold and try and be one of their best paid consigners of calves. That way you have a chance of benefiting from the work you are having to do. This is a free market opportunity led by forward thinking people so why not give it your support? You are a good example of someone who has the records already (as many producers do) so people in your situation should swallow the pride and get on with it, you may just get an enhanced return from the marketplace. Something that for all their hot air, ABP has no idea how to accomplish. Sticking with being the lowest cost supplier to the US, given their ethanol byproduct advantage, and relying on the trickle down effect to enhance our returns clearly won't work but it seems to be the only idea knocking around in the collective heads of ABP/CCA.

Coppertop,
Don't be fooled by the ABP moaning this is a positive move by the AB government and I thought you of all people would see that. The scanning you mention sounds like a traceability/movement tracking system which is something we desperately needed anyway. If you have details of the actual requirements please post them as I haven't read them anywhere else. The comment "Particularly when anything going across the border is mouthed" highlights how far ahead this program will put us compared to the US(fred flintstone)standards.