Feds must take real action on livestock crisis, Article by CFA,

[joedales]

Feds must take real action on livestock crisis.

(OTTAWA) – The Canadian Federation of Agriculture (CFA) is calling on the federal government to take real concrete action to address the crisis facing Canada’s livestock industry. To date, despite desperate calls from the industry, the government has made no move to implement any new initiatives to keep thousands of livestock producers, particularly pork producers, from losing their farms.

“We have seen some action at the provincial level, so the federal government now needs to show some leadership and step up to the plate,” said Bob Friesen, CFA President. “All the announcements made to date have dealt with program money already announced and committed. They have not addressed the solutions being recommended by the industry.”

Over the past year the Canadian livestock sector has been hit with a perfect storm of events that have combined to cripple the industry: falling prices, rising input costs, a high-value Canadian dollar and loss of processing capacity.

Industry groups are not asking for ad hoc payments but rather the creation of a loan program to help producers weather the storm. In recent days the Prime Minister has announced plans to assist other industry facing challenges, including forestry and manufacturing. The livestock also sector is looking for an adequate show of support from the government.

“Without exaggeration, I can say we are on the verge of losing our pork industry, which has become a backbone of the Canadian agricultural export economy and to the entire Canadian economy,” said Friesen. “But this is not a permanent crisis. Those producers just need a hand to overcome this immediate convergence of roadblocks and they will be able to get back to making their major contribution to our economy.”



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Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations as well as national and inter-provincial commodity organizations from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.

Contact:
Kieran Green, CFA Communications Coordinator,

[farmers_son]

I have great concerns over any solution that involves more debt.

Please check out:
http://www.topmanagers.ca/BlogSubDetail.aspx?DocId=648&CurYear=2008

Dr. George Brinkman correctly points out that Canadian farm debt is already at crisis levels. More debt is not the solution.

I am sure the pork people are in a crisis. However part of that must be seen as the logical result of the move to the very large, mega hog operations and the resulting move away from the diversified integrated farm. The big single enterprise operations are too vulnerable to risk and although the economies of large scale did create profits for a while, there was too much risk for too little profit.

It was no different for the cattle feedlot industry. The large feedlots looked great until risk came home to roost (in the form of BSE). Without massive government handouts those operations were toast. Although CAIS favours the single enterprise large scale model, during economic downturns CAIS only offers short term protection before reference margins are all used up. The smaller scale diversified farm is far better able to withstand risk over the long term.

Whether we are talking hogs or cattle, single enterprise large scale operations do not offer a future without massive government assistance during times when risk affects profits. Canadian agriculture needs to consider the value of the smaller scale diversified farm which is far better able to manage its risk.

We need to protect and value our family farms. That is where agricultures future really lies.

[grassfarmer]

I agree the CFA calls for additional loans are not the answer. As far as addressing "the solutions being recommended by the industry" I'm not sure what these solutions are? - as far as ABP/CCA and the beef sector are concerned they appear to be clean out of solutions.

Asking for loans on a temporary basis because "this is not a permanent crisis. Those producers just need a hand to overcome this immediate convergence of roadblocks and they will be able to get back to making their major contribution to our economy.” shows me that this organisation like most of the commodity groups have little understanding of the true causes of the current farm crisis.

Equally in farmers_son's response I think it is wrong to pin the current problems on a move to larger specialised livestock operations and their inability to handle risk.
Don't get me wrong I support the family farm too and see it being the backbone of rural communities. As you say "there
is too much risk for too little profit." and that applies to all sizes of agricultural operation in Canada today.

I think looking at the situation and properly identifying what that "risk" is would result in a different conclusion. The risk that is currently ruining both large scale and family farm operators in Canada is not what I would deem a business risk like poor weather at calving or harvest time, drought or poor crop growth. The "risk" we see today is brought about by an inbalance between primary producers returns and those of the processing, handling and retailing giants. The lack of returns for primary producers is mostly caused by corporate consolidation and the subsequent elimination of competition beyond the farm gate.
It would be fair to say this position of corporate power has been encouraged and enabled by successive federal and provincial government policies and funded by Canadian taxpayer money. Low or negative returns to primary producers whilst record profits are reaped by the corporations are a government policy in Canada. Until producers start to understand and accept this reality they don't even have a target to shoot at when trying to improve their lot.

[kato]

Boys, it's just getting started.

We were at the auction mart today and calves were off big time. They were saying that this morning the American buyers called up and stopped orders on lighter calves. Stopped them cold, just like that. They're still interested in heavier ones, but at a price. All the steers we saw sold were in the 80's no matter what size, and all the heifers were in the 70's, no matter what size.

I suspect that MCOOL is a factor here, and animals that won't finish before the end of September are of no interest down south. Someone is trying to drive the market down. They've been listening to the speculation over future feed costs (that may or may not happen) and the potential effects of MCOOL. Is this our future???? If so, it's worse than the BSE fiasco. No market for feeders from the south, broke feedlots here, so no market here either, and us still at the mercy of the two big pirates, so no decent market for fats.

Four years after BSE and we're not better off.

I think one way our government can help us is to get off their duffs and go after the U.S. to live up to it's signature on the FTA that says the country of processing is the country of origin. NOW!

We don't need more debt. Another loan is the last thing we want right now, especially if we have such an uncertain future.

What we need is a government that stands up for our interests by making sure that treaties and agreements that we live up to are also lived up to by the other parties that signed them. Either that or quit living up to them ourselves and shut off some taps.

Time for the PC's to strap on a pair and grow some backbone. Otherwise rural Canada will soon be owned by two large corporations and we'll all be just serfs slaving for the masters....

[Cedar]

"rural Canada will soon be owned by two large corporations and we'll all be just serfs slaving for the masters...."

....apparently, just as the "powers that be" wish it to be, eh!!!!

Kato: in an earlier thread you mentioned reading an article about the mcpa annual meeting where Rick Pascal was saying about feedlot alley being on a "death march", etc., can you tell me where you found that article? ..or any links or leads to this info?

[greybeard]

Cost of gain in US feedlots is being projected at over a dollar a pound. Assuming 3# a day gain and a 250 day stand for small calves, what are they worth?
I read typical ratio corn to live cattle price is historically 30:1. That means $2 corn=60 cent fats, $3 corn=90 cent fats, etc. We need $1.50 fats with $5 corn.
Take a look at the list of exporters into the US posted on another forum where Canada ranks second in volume of boxed beef. Every other country uses grass gains.
Grass farmer’s resolution for grass finished research needs to be reworded to make it easier to swallow. What is the ratio of grass/ grain gains that make the most in today’s high grain cost economy? Maybe that is no grain?

[per]

Reconciliation time is here. Like it or not we will see what the seeds we have sown will grow. I just can't get that darn question out of my head; what would COOL and Asia have looked like today if we addressed BSE 4 years ago? In the mean time we have COOL coming and have to address it. Holding the US's feet to the fire on the FTA is paramount. Branding our product unique by setting ourselves apart is also important. On another thread there was talk of both vertical and horizontal integration of our industry, by all means. We could do that by owning all parts of the sector including the plants. (risky, Yes but so is the status quo). This is an enjoyable business but it needs to be profitable to sustain the enjoyment.

[kato]

Cedar, I think I read it in the MCPA newsletter. He was speaking at the annual meeting if I remember correctly.

As for MCOOl, if the wording isn't changed to something legal, maybe instead of trying to set up a packing plant here, we should be looking into Canadians buying an existing American plant, (or two!) and dedicating it exclusively to processing Canadian cattle? Brand the product and promote it, and have direct access to a market that until now hasn't known where they've been getting that really good beef all along.

It's what American business has been doing for many years. I bet they'd be happy to see us following their business model. Right........ LOL

[woolpuller]

There is also a problem that the federal gov't has ignored completely. When BSe hit, the border was closed to cattle and also sheep. So far are illustrious leaders have done something for cattle but nothing for sheep. Guess its still a forked tongue in Ottawa.

[Willowcreek]

I think if you folks are thinking there will be major changes to M-COOL, you might do better wishing in one and hand- and something else in the other...LOL

Ain't going to happen...The US consumer is the one now asking for this- and they want COOL to show them where the product comes from- not where it was processed...They want to know if the fish they're buying was raised in polluted rivers of Vietnam, or the beef they're buying came from cattle raised drinking from chemical filled streams of Mexico or countries that have BSE cluster areas like Canada!!!

The Chinese problem enlightened everyone to all these unlabeled/falsely labeled tainted and potentially dangerous products and has caused a consumer backlash....

Remember this is an election year in the US- and none of these politicians want to come out now appearing as tho they support something anticonsumer (voter)...And even if a miracle did occur- and the current law was changed or postponed (which is not believed possible by anyone- the reason the buyers are already taking actions) there is a huge populist movement that believes the cause of all our economic problems is this global trading and FTA's- which is going to sweep the Democrats and their America First theme into control of not only the White House but also give them a big majority of both houses of Congress...Democrats have historically supported the consumer groups-and US workers- and so if the law isn't passed this year- an even stronger one probably would be next year..

It appears to me that Canadian cattlemen, if they want to remain viable, should be looking at testing ALL- marketing tested Beef- and trying to get the Japanese, Korean, and Asian markets that are still closed to the US--instead of going back to the old status quo of riding on the US producers shirttails....Because it should be getting obvious right now the multinational packers have you sucking hind teat....

[grassfarmer]

Willowcreek you gave me a little laugh there when you said "They want to know if the fish they're buying was raised in polluted rivers of Vietnam"
I was lucky enough to travel to Vietnam a decade ago and was really impressed by the peaceful, forward thinking attitude of the citizins. Of particular interest to me were the farming methods they were using. They had very holistic operations that combined growing rice in paddy fields along with rearing ducks and fish for protein in the streams and canals that watered their paddy fields. The thing that was notable was their absolute non use of chemicals or pesticides in their production system - they have learnt through experience the effect of these substances on their environment. The source?? - of course the good old USA with their trigger happy environmental contamination of the Vietnam war designed to poison the people and countryside. McNamara's campaign pledge to "bomb them back into the stone age"
So your picking on Vietnam as an example of a polluted country was rather ironic. Of course being an American I didn't expect you to understand that, never has there been a country in the history of the world so far up itself with a belief in it's superiority.

[kato]

In OT's Opinion......
It appears to me that Canadian cattlemen, if they want to remain viable, should be looking at testing ALL- marketing tested Beef- and trying to get the Japanese, Korean, and Asian markets that are still closed to the US--instead of going back to the old status quo of riding on the US producers shirttails....Because it should be getting obvious right now the multinational packers have you sucking hind teat....

And what do you think the American government/multinational corporations would do if we got the jump on them and started "stealing" your export markets??? Sit back and allow it??? Not bl(*&y likely! What do you think the odds are that Cargill/High River will do anything to compete against Cargill/USA or Cargill/Australia? Get a grip and see the reality.

The fact of the matter is that MCOOL as it is written is a violation of an existing trade agreement, and that is that.

If it stays as written, then I hope our government and others around the world will take notice that America's word is not worth the paper it's written on, and will keep it in mind next time America wants access to power and resources.

[per]

There was a contaminated fish farming scandal in Asia a few months back that did name Vietnam among others. I guess looks are deceiving and that is why Americans want things properly labeled.

[grassfarmer]

" and that is why Americans want things properly labeled."
I rather doubt it PER. The US is indulging in blatant protectionism and like to imply that all the other countries in the world produce to a lower standard than the US does - their treatment of the BSE cases in Canada shows this hypocrisy. In fact much of the environmental pollution around the world is caused by US corporations and their shoddy practices or by US consumers exporting pollution through their dedication to shopping at Walmart which is happy to source product anywhere, produced under any conditions, as long as they can make a big enough margin on retailing it.

[per]

gf I think you might have missed the sarcasm. Should have used the happy face sunglasses guy. Interesting that Walmart last year was the single largest trade customer of China.