Government Program for Slaughterhouse Improvements.

[joedales]

I had this release sent to me....wondered what everyone thought of this program.

Thanks, Joe



GOVERNMENT OF CANADA HELPS FARMERS BY INVESTING IN SLAUGHTERHOUSE IMPROVEMENTS

News Release

OTTAWA, Ontario, June 5, 2009 – The Harper Government’s Economic Action Plan is supporting the livestock sector by making meat packing and processing facilities more competitive and accessible to farmers across the country. Agriculture Minister Gerry Ritz along with Minister of National Revenue and Minister of State (Agriculture) Jean-Pierre Blackburn today announced that the three-year, $50-million Slaughter Improvement Program is now in place and will soon be accepting applications.



“Our Government’s Economic Action Plan puts Farmers First in these difficult economic times,” said Minister Ritz. “By improving processing, we’re helping to help create a greater demand for livestock and better prices for farmers.”



“This program delivers on a promise in Canada’s Economic Action Plan to Canada’s meat packers and processors,” said Minister Blackburn. “We are addressing regional gaps in this sector by providing new marketing options and lower transportation costs in areas where limited access to meat packing and processing facilities is affecting the growth of the sector.”



The program will make federal repayable contributions available to support investments made by the private sector and other levels of government in sound business plans aimed at reducing costs, increasing revenues and improving operations of meat packing and processing operations in Canada. Investing in a stronger meat packing and processing industry in Canada benefits the entire value chain and leads to a more profitable and competitive industry and a stronger economy.



Meat processing is responsible for $20.5 billion in annual sales for Canadian livestock farmers.



Details of this program will be published in coming weeks and application forms will be available by the end of June. For more information on Canada’s Economic Action Plan, visit www.actionplan.gc.ca.

[farmers_son]

It is hard to know what to think about a program like this. As cattle producers we need packing plants. We need further processors as well. We also need grocery stores…should they get money too?

At some point the industry will wake up and realize that we need the grass factory too. By grass factory I mean that cow and calf out grazing in the fields that are the real backbone of the industry.

We actually have lots of packing plant capacity in this country although not necessarily lots of competition. Unless the government money to packers increases the competition for our live cattle little benefit will come of it. I have heard nothing about a lack of further processing capacity and I really do not have a clear picture of our industry beyond the packing plant. I could probably list off most of Canada’s more important packers but would be hard pressed to list off very many of Canada’s further processors. Do they need government bucks? I don’t know.

As a cattle producer, I see that we need alternative markets for our live cattle in order to inject a degree of competition back into the marketplace. Giving money to Cargill and XL will probably not help the industry where it needs help most. The money might do more good if it were directed to other packers rather than those two. Where the help is needed most and where the most benefit would be derived is maintaining or growing the size of the cow herd so we have the cow factory capacity to take advantage of the upswing in the industry which I believe is sure to happen in the not too distant future. Preserving the cow herd needs to be the focus or there will not be a need for those packers and further processors.