So just saying they will have all the packers in Canada
Nobody said all packers will be in Canada!
The sensible forward looking business might just be though.
Let's look at 4 items that are posted regularly on Ranchers:
1) BSE safeguards
2) Captive supplies
3) vCOOL or mCOOL
4) input costs
1) Logically we all know that the safeguards in place in both countries are the same, at present.
So these costs to the packer will be the same no matter what country they operate in. Consumer confidence will only be hurt in the US if R-calf continues on their tangent of health issues! Contrary to their mandate of trade issues.
2) If R-calf and their followers get their way, Captive supplies will be illegal in the US(right Sandhusker). It's not in Canada, so where will the large packers have the most influence on the market? Where will they be able to take the most advantage of market manipulation as some would call it? And where will there be more competition for cattle come from? An increase in packer capacity!
3)COOL, it's not going to effect food service or Restaurants. And at 7% of the US market, where are the packers going to market their product to reduce costs of labelling etc? Isn't this where the value added also comes in? Further processing? Canada can easily supply the food service industry and export those cuts that sell well in other countries.
4) Input costs are lower in Canada because we don't have the demand on these resources from other domestic industries. We export more than we use. If Canada was to process raw resources for domestic consumption and export the surplus raw resouces we would be laughing. Are we doing this at present, no, we export raw, and import finished, but trade disputes have a way of motivating the voting public to demand this kind of action.
So, I would welcome and analysis of these four points, but I would also say:
BE CAREFUL WHAT YOU WISH FOR
