Beef imports increase

[Sandhusker]

I didn't make myself clear. Campbells soup outsells generic soup. Van Camps beans outsells generic beans. There's a lot of generic products that you can't even buy anymore because they just didn't sell, even though they were cheaper.

Budweiser outsells Busch, and they're from the same outfit, but Bud is priced higher. Why do people spend more for Bud?

 

[Big Muddy rancher]

I didn't make myself clear. Campbells soup outsells generic soup. Van Camps beans outsells generic beans. There's a lot of generic products that you can't even buy anymore because they just didn't sell, even though they were cheaper.

Budweiser outsells Busch, and they're from the same outfit, but Bud is priced higher. Why do people spend more for Bud?

Not because it was made in the USA but because of advertising and developing a following.

 

[Sandhusker]

I didn't make myself clear. Campbells soup outsells generic soup. Van Camps beans outsells generic beans. There's a lot of generic products that you can't even buy anymore because they just didn't sell, even though they were cheaper.

Budweiser outsells Busch, and they're from the same outfit, but Bud is priced higher. Why do people spend more for Bud?

Not because it was made in the USA but because of advertising and developing a following.

That is exactly the job of the checkoff in "Operation Producer Survival".

 

[Anonymous]

I didn't make myself clear. Campbells soup outsells generic soup. Van Camps beans outsells generic beans. There's a lot of generic products that you can't even buy anymore because they just didn't sell, even though they were cheaper.

Budweiser outsells Busch, and they're from the same outfit, but Bud is priced higher. Why do people spend more for Bud?

Not because it was made in the USA but because of advertising and developing a following.

That is exactly the job of the checkoff in "Operation Producer Survival".

Yep- and it can't be advertised, promoted, and develop a following unless it can be identified from all the generic beef we haul in from 40+ countries around the world....

 

[RobertMac]

It's a shame when a good post goes unappreciated.
Pointrider, anybody that likes frog legs, cold beer, and gold tequila is alright with me!!!! 8)

My recommendations for all U.S. and Canadian cow-calf producers (who are near and dear to my heart) - for what they are worth - are:

1. If you are not already in one, get into a benchmarking program and be determined to make changes that will put you in the top group (quartile or third) in terms of profitability.

2. If you are not already in one, join an alliance that has a proven track record for getting premiums for value added cattle if there is one in your area and it matches your cattle types. You don't even have to put all your cattle in the program to impact the bottom line, and every little bit helps. In other segments of agriculture producers have moved into the top group by including high-margin niche products in their production and marketing mix. The higher the margin, the less of it you need to make a significant difference.

3. Participate through your industry organizations on industry issues, but put most of your time and effort on number one and number two (in addition to running your operation, of course). It could mean the difference in surviving in the beef industry or not. Ask yourself, "How many producers have left the business in my country in the past 5 years?" Large changes by the beef packers are not going to happen overnight, so take that as an opportunity to do things to make sure you last as long as possible. There is a lot of evidence that the global industry is headed toward a new business model.

BC, you and the rest need to read this post again.

Let me explain something to you about consumers...there is no mold that all consumers fit into. The consumer that shops on price only will buy pork over beef...will buy chicken over pork...will buy beans and rice over chicken. The idea beef will increase market share with price reduction is like chasing an illusional carrot on a stick. You would have to give your cattle to the packer to reach that goal!

I have customers that make other sacrifices in their lives so they can pay a premium for my beef. That's the other end of the consumer spectrum.
Which consumer do you want to be going after to buy your beef?
Your Canadian loins are very valuable in the H&R market and the packers are reaping that value. Why not try to take that market instead of going after the Wal-mart market? The only way we are going to survive is to do what the packers can't.

The single best reason to support COOL is that the big packers don't want it...that alone should tell you something!

Have a good one and stay warm...I'll be thinking about you while sweating through these 80+ degree days. :wink:

 

[burnt]

Here's the way I see it ,FWIW. Down at the local supermarket in Montana with the flag hanging off the front, they probably have 4 or 5 salesmen coming around or phoning them looking for orders for beef. Two will have multi- label beef and the other three will have only USA product, as it's not worth the trouble for them to do any other. One of the local boy's has been doing the lion's share of the business, but is now at a constant price disadvantage. His relationship keeps him in the market for a while, but the guy with the product of Uruguay soon gets all the grind product as the store finds those buyers are very price conscious and they are losing customers to Wal-mart . Soon after that the Multi-nationals man comes with a super deal on loins because he is able to pass on a special deal he just got and the local guy is out of the market and is sick of hearing constant price objections and doesn't stop any more. He later gets laid off in a cut back and his small packer employer is bought out buy the big muli-national and they shut it down within a year because it's not an efficient plant. The supermarket finds they can make better margins selling the cheaper product, and very few of their customers even notice.

My observation has been that more regulation always favors the big guy. That applies across all industries. They can have a department working to ensure compliance, where the small outfit is overwhelmed.

You have a big Californication going on at capital hill. If that doesn't drown you in a bureaucracy I don't know what will.
Good luck with that.

It's a shame when a good post goes unappreciated.
Pointrider, anybody that likes frog legs, cold beer, and gold tequila is alright with me!!!! 8)

My recommendations for all U.S. and Canadian cow-calf producers (who are near and dear to my heart) - for what they are worth - are:

1. If you are not already in one, get into a benchmarking program and be determined to make changes that will put you in the top group (quartile or third) in terms of profitability.

2. If you are not already in one, join an alliance that has a proven track record for getting premiums for value added cattle if there is one in your area and it matches your cattle types. You don't even have to put all your cattle in the program to impact the bottom line, and every little bit helps. In other segments of agriculture producers have moved into the top group by including high-margin niche products in their production and marketing mix. The higher the margin, the less of it you need to make a significant difference.

3. Participate through your industry organizations on industry issues, but put most of your time and effort on number one and number two (in addition to running your operation, of course). It could mean the difference in surviving in the beef industry or not. Ask yourself, "How many producers have left the business in my country in the past 5 years?" Large changes by the beef packers are not going to happen overnight, so take that as an opportunity to do things to make sure you last as long as possible. There is a lot of evidence that the global industry is headed toward a new business model.

BC, you and the rest need to read this post again.

Let me explain something to you about consumers...there is no mold that all consumers fit into. The consumer that shops on price only will buy pork over beef...will buy chicken over pork...will buy beans and rice over chicken. The idea beef will increase market share with price reduction is like chasing an illusional carrot on a stick. You would have to give your cattle to the packer to reach that goal!

I have customers that make other sacrifices in their lives so they can pay a premium for my beef. That's the other end of the consumer spectrum.
Which consumer do you want to be going after to buy your beef?
Your Canadian loins are very valuable in the H&R market and the packers are reaping that value. Why not try to take that market instead of going after the Wal-mart market? The only way we are going to survive is to do what the packers can't.

The single best reason to support COOL is that the big packers don't want it...that alone should tell you something!

Have a good one and stay warm...I'll be thinking about you while sweating through these 80+ degree days. :wink:

The above posts are all very pertinent except for RM's comment about the "80 degrees" - that was just plain nasty!! :wink:

However, RM, your comment about "COOL" was just plain disconnected. You were doing alright up until that point. I am not opposed to the idea of product identification by producer or particular brand/feature. But to try to market beef exclusively as a product of any country is far too open ended to be effective as a marketing tool.

Is all Canadian beef of equal eating experience for the consumer? Obviously, no. Is all American beef of equal eating value to the consumer, Again, obviously, no.

And B.C.'s comments about making decisions based on pocketbooks rather than patriotism are bang on!!

 

[Broke Cowboy]

And B.C.'s comments about making decisions based on pocketbooks rather than patriotism are bang on!!

Well Burnt - seems there are some who would disagree with you and me ......

Without going back to check as I am on holidays and moving cattle at my own place today - I believe I initially stated that price was the objective unless there was something else of value that would point the consumer away from the "price" decision.

However, be that as it may - Wally World uses pricing as one of its main drivers - and I believe there are at least a few people that shop there.

If you are one of the 8-9% unemployed people in the U.S. of A. - money always talks before the flag enters into the thought process. Unless I miss my guess, that is a market of around 25 or more million people in the U.S. of A. - around three quarters of the population of your northern neighbour.

That is a huge market and not to be ignored by any business.

Unfortunately that market will grow - and the fact that the U.S. dollar has some serious strength in Canada will attract the business northwards.

For example - I deposited $6,700 U.S. dollars in cash into my Canadian bank account yesterday after 28 hour trip to get home.

That turned into $8,408.50 Canuck bucks.

Quite a bit of buying power for those U.S. of A. companies coming north to make a purchase if you look at their dollars in the millions and how it translates into buying power in Canada.

The return trip to the U.S. of A. markets is easy with good infrastructure, easy border crossings and cheaper fuel.

Protectionism will drive prices up and the result will be a further reduction of beef consumption in your country - so increasing the cost of imports will not always solve the problem - as U.S. of A. businesses are not in it for charity - they are in it to make a profit.

Why would business do this? Because they can! No competition allows them to set their own price - after all, they now own the market. If you want it you can get it - but pay the price or go elsewhere - but wait a minute - there is no elsewhere! So the price will be paid - driving folks to other food commodities.

In this world today - and I may have helped to create it - as we all did - competition is the key.

If you cannot produce a comparative product that is cheaper, the buyer will go somewhere else. Profit is the key to a successful business and price is the attractor to many, many people when they open their wallets.

Hell, if you want to buy a pallet load of barbed wire (quality being equal in all cases) and company A is selling at $1000 bucks and company B is selling at $1400 bucks - which one do you buy at?

No different with food.

And we ALL do it - every reader on this board will go to the cheaper product at some time or another - to say "not so" is to prove to me you are either not telling the truth or you have more money than the rest of us.

So - I think I will stand by my initial comments - compete or walk away.

Hey, what do I know - I am a dumb uneducated soldier who raises a few cows on the side.

Best to all

Regards

BC

 

[RobertMac]

BC, my point is that beef can't and will never compete with pork or poultry on price/pound at the retail level. Because of the economy, beef demand will be going down and the packers know this. That's why the price of cattle is going down...not because of COOL like some want to blame.

My question to you is how do we increase the demand for beef?
Before you go there, I agree COOL alone isn't the answer.

Burnt, my comment on COOL was tongue in cheek, but their opposition should tell you something. Are they going to pay you more for your Canadian cattle if they don't have to identify it as Canadian?

Didn't mean to be nasty...it's "only" in the 50s today. :wink:

 

[Broke Cowboy]

BC, my point is that beef can't and will never compete with pork or poultry on price/pound at the retail level. Because of the economy, beef demand will be going down and the packers know this. That's why the price of cattle is going down...not because of COOL like some want to blame.

My question to you is how do we increase the demand for beef?
Before you go there, I agree COOL alone isn't the answer.

Burnt, my comment on COOL was tongue in cheek, but their opposition should tell you something. Are they going to pay you more for your Canadian cattle if they don't have to identify it as Canadian?

Didn't mean to be nasty...it's "only" in the 50s today. :wink:

Your comments about competition with pork and beef are well taken - however people will buy beef if only for the variety of meals.

The problem is that they will buy the beef that is lower in price in many cases - which may very well be the imported beef.

How does one increase the beef consumption?

My friend - when you come up with an answer I want you to bottle it and sell it - but please - come to me first as I want to be in on the first wave!

As the economy goes, so goes the consumers wallet.

When things are good the wallet opens easily - when things are tough, it takes a can of WD40 to lube up that wallet. I know, because I was just shut down this morning - wanted to buy a new pressure washer - wife actually stomped her foot in the kitchen and told me no way.

Being as I out weigh her by almost 100 pounds and stand about 6 inches taller than her, I stood up to my full size - glared at her and politely said - "Yes ma'am."

Sigh .....

This rooster is truly ruled by the hen.

BC

 

[RobertMac]

How does one increase the beef consumption? Image

 

[Broke Cowboy]

How does one increase the beef consumption? Image

I see merit in your point but not enough to bring more consumers to the table by eating U.S. of A. beef in your country.

Even though we are on opposite sides of the border, we face many of the same challenges.

I would love to see more folks eating Canuck beef in Canada and more food outlets serving Canuck beef.

There are more than a few major fast food and prepared food outlets that do not utilize Canuck beef in this country

You will have to expand that thought process before you can convince me that will be the one thing that works.

Cheers

BC

 

[burnt]

How does one increase the beef consumption? Image

By doing what you and Ben and a few others are doing - selling a branded, high quality product to those who want beef from a known supplier rather than a generic product sold over a counter.

That is something that COOL cannot achieve.

Having said that, there is a strong demand for beef sold under the "Ontario Cornfed Beef" label, but mainly because it offers a consistent, fairly uniform eating experience every time. The beef sold under that label is raised under a stringent set of guidelines to protect the integrity of the marketing scheme.

That is the only type of labeling that has any meaning. And something that COOL is incapable of achieving.

So, if you want Americans to have the opportunity to choose U.S. beef, give them a product that they will take because of flavour rather than flag. You cannot lose. Unless, of course, they choose "Ontario Cornfed Beef" over the U.S. stuff! :wink: