cow beef

[cowman]

A good portion of the proposed new plants were supposed to be for OTM beef. It is a widely held view that we have a huge backlog of cows waiting to be culled out for slaughter? Is our problem lack of capacity to get those cows killed or is it a lack of markets for this OTM beef? If we had the capacity to get all these cows killed where would we sell the beef?
Obviously the government tightened up the amount of offshore beef coming in and that probably helped a lot? And the BSE survelence program has removed thousands of cows that would have found a home at MacDonalds!
But in fact to get the OTM problem solved don't we really need the US border open? I note that weekly kills in Canada on UTM beef have dropped since the border opened to UTM cattle...in exactly the same number as live fats crossing the line!
Now I would think that killing 10,000 less young cattle per week would open up a lot of space for cow kills? Probably creating all the capacity we need to get all our cull cows killed?
But then what do you do with that OTM beef? So I would think our real problem is a market for that beef and not a problem of capacity? Maybe we should not build these new plants if a market is our real problem?

[rkaiser]

Marketing is definately the problem cowman. The bigger problem however is that Cargill and Tyson are still making a clear and excessive profit on UTM beef in comparison to what they were making prior to the BSeconomic border closure. The basis is still high - in other words. That, coupled with he fact that Cargill and Tyson built up a war chest from the profits incurred during the closed border, has given them leverage over any other plant in Canada and complete control of the wholesale market. At any given time, Cargil, or Tyson, or the ever "vulture-like" looming Xcel, can punt their competitors with a blowout price of 99 cents for trim to Canadian retailers.

We have capacity now cowman. You are correct. If Canada does not WAKE UP RIGHT NOW and allow these new plants the ability to test for export market potential, the producers of this country will suffer another devastating blow. The BSE games are far from over. It has become the greatest economic tool of all time in the global beef industry. Why would anyone give up this obvious "ringer" that easily.

For any of these new plants to survive, they need to be able to compete globaly. This true free marketing can only occur if Cargill and Tyson are not allowed to keep making the rules about testing for export marketing.

Please remember, I am advocating testing for a customer that asks, AND ASIA IS BEGGING.

[cowman]

Without a doubt the rules need to be tightened up in Canada. At the very least to a level that is comparable with the USA! I can imagine the big boys at Cargill and Tyson can't believe what they can get away with up here? Predatory business practices, lack of market visibility, packer ownership of cattle...they must smile everytime they can pull a dirty trick!
Unfortunately I don't see that changing anytime in the future? It is unlikely our governments want to make that change...and why should they when our cattle organizations tell them things are just peachy the way they are?
I have no solution. You are trying to do it different, probably with some success, but I think you even hint you are coming up against the "system"?