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Have we learned anything?

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    Have we learned anything?

    NCBA balks at Canadian cattle over 30 months.

    Under the guise of reciprocity by Canada not taking their 30 month cattle, I would say nonetheless that this is a good deal.

    What we have learned? Might start with continued emphasis on our new packing plants. Might be good to get us in shape for international markets.

    Trading cattle on hoof means a possible future gamble - same thing happening again and over will make the last 3 years look easy. We had a government that was strong and could step last time : it may not be so easy next time.

    Our actions might prevent a "next time". That's Alberta's collective spirit and astute business head.

    Don't cut back on tagging, tracking (cattle and feed) packing, and shipping worldwide.

    #2
    Right now OTM cattle seem to be our main problem? We are pretty close to having capacity for all our fat cattle?
    We do need some more cull cow space but that should happen fairly soon? However we do need some expanded markets for that OTM beef.
    One novel approach might be to stop importing any manufacturing beef from any country that does not open their borders to our beef? If we have a mountain of backlogged cow beef to get rid of we don't need to be importing anymore? I realize we have done this to a certain extent.
    Right now there are a lot of fats(and feeders) crossing the line into the US? Why? Probably because the US market is paying more despite all the hassles at the border! Canadian slaughter is actually off, partly due to the Lakeside strike and its aftermath?
    But here is the problem we will always face: We can build capacity up here but if these new Canadian plants can't or won't compete our cattle will go to the highest bidder in the USA? Then what happens to these new plants? Don't forget 80% of our Canadian capacity comes right now from Cargill/Tyson.
    The US plants do have an advantage. They have lower wages, lower energy costs, lower red tape? When Tyson bought the Lakeside plant they floated the idea of having the Canadian government consider the plant as American territory(like an embassy) so they could use USDA inspectors, US labor laws, US environmental laws etc.! Of course it didn't float....maybe it should have?
    Instead of focussing on building our own "Canadian plants" our governments and industry leaders should be focussing on keeping the USA living up to their NAFTA agreement? How well have they been doing that? Our federal government has let the bullys in the US walk all over us with barely a whine or a whimper? Could they have done more?

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      #3
      I heard on CNN last night that the Americans have decided to honour the NAFTA decision on softwood lumber. The way it was worded in the headlines was "America Caves in to Canada". Isn't it interesting how living up to a legal and supposedly binding international trade agreement is considered "caving in"?

      This is the basis of our problems. International agreements are only supposed to be adhered to when it is in the best interests of America. If anything is found after the fact, that leaves America in a less than favourable situation, compliance is optional ... on their side. Not optional on ours.

      Right after watching that story, we turned to the CBC and watched a story about the oil drilling proposal for the wildlife refuge in Alaska. The reporter spoke to a congressman about it, and was soundly slammed for Canada's selfish attitude. Wow! He called us all greedy and stomped away down the hall. The guy just asked him a simple question about the caribou, and he blew up. Maybe it's just my Canadian upbringing, but boy,he was rude! Really rude!

      Apparently we don't appreciate the fact that without America, we would not survive. He seemed to think we owed them something for the fact American corporations have come here to save us from oblivion, and without their support, we'd all surely fall off the face of the planet.

      One thing I know, it ain't safe to try and stand between these guys and an oil field, that's for sure.

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        #4
        A big part of the problem with NAFTA is the perception it is not fair and in many ways it isn't? Canada has benifitted more than the USA?
        Take soft wood lumber as an example? In the USA the stumpage fee is higher than in Canada. In other words Canada gives the lumber companies a better deal? The same goes for oil? Alberta gets about a $4 royalty on a barrel of oil...Alaska gets $9! So really, who is subsidizing business and dumping cheap product into the others market?
        For fair trade we need some sort of standardized payment for resources that are the property of the people of North America? We actually need to move much closer on just about everything if we hope to ever create a truly free and fair market?
        Probably one currency, one set of environmental laws, a common inspection and regulatory system for all products?
        Canada has not been a good neighbor in a lot of areas? We have been used as a way into the American market by every scoundrel in the world! A clear example of that was the practice of shipping Australian beef into Canada, restamping the box "product of Canada" and moving it into the US.
        Before we rip the Americans too hard we should realize that they actually have some basis for their protectionist attitude? We actually have not played the game very fairly?

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