How many of you folks out there in Agivilleland support the idea if Producers owning one or more packing facilities paid for, over time, by some form of Levy? Over time, as well, this levy would then become shares in the company.
I will not, for a moment, say that any of these new proposals on the table from private, or co-op type groups are not legitimate, or needed, but the numbers are small, and the competition needed to bring up prices will still not be there. Excuse me, at this point I am talking about cull cow/ cull bull facilities.
I beleive there is merit in not only expanding kill floor space, but also in making it pay for the producer in the form of competitive pricing. That to me is the worst part about the announced expansion of Tyson et. al. Expand at a pace where supply moves up slowly, so as not to reduce profits quickly. This is the area that we need more Canadian owned influence, to supply competition for UTM's.
Somehow the BIG C group has talked about and researched this concept enough to feel we are ready to answer most questions, and look for a consensus among producers. This is now the approach we are taking with Industry groups and Government alike. Help us produce a plebicite of some form so we can either sh*&^ or get off the pot.
One of the biggest concerns revolves around competition with other new start up plans.
1). If these plants are afraid of competition, how do they hope to survive in the world of Cargil and Tyson.
2). Competition is the only hope that the producer has to see price increase. If co-op members and investors are the only ones to see profit from these new ventures, what have we gained?
One of the big concerns regarding any plant expansion is viability when then border opens and competion returns.
Steer away from the mainstream, search out new markets. The idea of sending cow and bull meat to Asia is NOT inconcievable. And the competitive ability of new plants should not be discounted in new UTM plants either.
There is no need for fear. Sure these Multinationals are cut throat players, but that does not strictly mean they will be out to loose money to destroy new players. How many businesses enjoy the liberty of guaranteed success due to limited competition. I say bring on the competition, maybe we can buy them out someday, like the producers of New Zealand did.
2). After visiting the CBEF office yesterday, I was pleased to see support for a thought that we at BIG C have had all along. Anyone telling you that we are without Asian market potential is out to lunch. We do not have to ship a lot of product off this continent. The Asian population is huge, and the economies are thriving. They love and want Canadian beef, and we soon will not even come close to supplying their needs.
Creating competition is our only way. First build the plants to compete with the ones that are profitting because of no competition. And simaltaniously build the market, which is NOT going to be a problem. We have the ability to give these protectionist American's, as well as the Value added American's a run for there money, I think it is time to take that chance.
Lots of details to work out in a levy funded producer owned plant, or plants, but the idea of creating a competitive marketplace by not forking out thousands of dollars appeals to me very much.
I will not, for a moment, say that any of these new proposals on the table from private, or co-op type groups are not legitimate, or needed, but the numbers are small, and the competition needed to bring up prices will still not be there. Excuse me, at this point I am talking about cull cow/ cull bull facilities.
I beleive there is merit in not only expanding kill floor space, but also in making it pay for the producer in the form of competitive pricing. That to me is the worst part about the announced expansion of Tyson et. al. Expand at a pace where supply moves up slowly, so as not to reduce profits quickly. This is the area that we need more Canadian owned influence, to supply competition for UTM's.
Somehow the BIG C group has talked about and researched this concept enough to feel we are ready to answer most questions, and look for a consensus among producers. This is now the approach we are taking with Industry groups and Government alike. Help us produce a plebicite of some form so we can either sh*&^ or get off the pot.
One of the biggest concerns revolves around competition with other new start up plans.
1). If these plants are afraid of competition, how do they hope to survive in the world of Cargil and Tyson.
2). Competition is the only hope that the producer has to see price increase. If co-op members and investors are the only ones to see profit from these new ventures, what have we gained?
One of the big concerns regarding any plant expansion is viability when then border opens and competion returns.
Steer away from the mainstream, search out new markets. The idea of sending cow and bull meat to Asia is NOT inconcievable. And the competitive ability of new plants should not be discounted in new UTM plants either.
There is no need for fear. Sure these Multinationals are cut throat players, but that does not strictly mean they will be out to loose money to destroy new players. How many businesses enjoy the liberty of guaranteed success due to limited competition. I say bring on the competition, maybe we can buy them out someday, like the producers of New Zealand did.
2). After visiting the CBEF office yesterday, I was pleased to see support for a thought that we at BIG C have had all along. Anyone telling you that we are without Asian market potential is out to lunch. We do not have to ship a lot of product off this continent. The Asian population is huge, and the economies are thriving. They love and want Canadian beef, and we soon will not even come close to supplying their needs.
Creating competition is our only way. First build the plants to compete with the ones that are profitting because of no competition. And simaltaniously build the market, which is NOT going to be a problem. We have the ability to give these protectionist American's, as well as the Value added American's a run for there money, I think it is time to take that chance.
Lots of details to work out in a levy funded producer owned plant, or plants, but the idea of creating a competitive marketplace by not forking out thousands of dollars appeals to me very much.
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