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IBP 1.2 billion Monopoly

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    IBP 1.2 billion Monopoly

    Kernel;

    IBP was bought by Tyson in 2002.

    I see this on DTN today;

    "COURT AGREES WITH CATTLEMEN, AWARDS VERDICT OF $1.28 BILLION

    Cattlemen who won a $1.28 billion verdict against the nation's largest beef packer found immediate cause for celebration, even if the decision's long-term effects won't be apparent for some time, according to the Associated Press.

    A federal court jury deliberated four days before agreeing Tuesday with the cattlemen -- who claim to represent thousands of beef producers across the country -- that Tyson Fresh Meats Inc. used contracts with a select few ranchers to create a captive supply of cattle.

    "I prayed and hoped this would happen, for sure," said Henry Lee Pickett, the lone Alabamian among the six cattlemen who sued Tyson Fresh Meats Inc., then known as IBP Inc., in 1996. "It helps the little man, and I'm a little man."

    The cattlemen said that captive supply allowed Tyson to stay out of the cash market for cattle when prices were high and re-enter only when prices fell -- thereby keeping cattle prices low".

    Aren't the simularities with the CWB monopoly staggering?

    The Canadian government has even better control of the grain sector than the packers do... with the CWB.

    By keeping a monopoly, and keeping malt barley, milling wheat, feed barley and feed wheat prices below world market values...

    Canola is lower than it would be... in comparitive terms... if barley and wheat used in human consumption markets were worth $30/t more... every other crop grown would need to be bid higher to attract the acres away from the CWB.

    This is why the Monopoly/Pooling was instituted in the first place... a stable low price for wheat and barley will create a stable and lower price for every other crop grown in Western Canada!


    Take a look at 2002-03 VS 2001-02 average wheat prices recieved by the CWB for the two pool years...

    $226.41/t (02-03) verses $217.54/t (01-02)...

    THis has exactly the same monopoly effect as what was just been ruled on in the IBP/Tyson case.

    But farmers figure as long as we "designated area" farmers all lose $30/t... everything is fair?

    I object!
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