Agman says -
The tunnel vision is yours alone. You have won that prize. You are the one who is constantly complaining about the big packers. Did they cause BSE? Did they not run their plants full time to help minimize the backlog of cattle that already existed in Canada? Have they not invested profits through expansion back into the Canadian beef industry? Did small packing plants also not profit from an unfortunate and unexpected situation?
When you are already at capacity any residual supply is essentially worthless. Did your prices go to ZERO? Do you recall the hog market in the U.S. in the fall of 1998 when total supplies outstripped slaughter capacity even though some packers ran their plants on Sundays to help alleviate the backlog? The limitations of the workforce had to be considered then just as they did in Canada during the midst of the BSE crisis. Are cattle on feed totals in Canada not up 18% from last year? Does that change in supply not make a difference in the value of fed cattle?
Has it not been the big packers who have been making every attempt to reopen the border to their benefit and yours?
Mine alone hey agman. Seems to be a lot more people all the time questioning a system that for two years has seen excesive profits in one sector of the industry and massive equity loss in the other.
When such a dramatic and obvious situation occurs something needs to change.
The packers did not cause BSE but are certainly taking advantage of the situation in Canada. Is that blaming, or simply a fact?
"Did they run their plants to help miimize the backlog?" That is about the lamest statement I have heard from you yet Agman. You are the one who talks of economics yet you cannot figure out that when profit per head is high, and unchallenged, you could simply kill as many animals as posible to grab all the profit you can. Give me a break on the packers heartfelt decision to run their plants wide open.
Of course they had to invest back in. Another simple business move. Are you up a bit early this morning Agman. You told us margins were 65 bucks American last week. Does that not equate to profit that would become taxable should they not spend some of it in Canada, rather than take it home to Uncle Sam.
Yes small plants profitted as well. And so did I in a retail market price set by the boxed beef trade with the USA.
So why do all these things mean that I do nothing but complain about the packers. Have you ever shown why everything you say is in their defense.
I told a friend once who asked me the question about prices going down to zero. I said that I wish they would, because that would be reality. The only reason prices stopped where they are is to satisfy packer lovers like yourself, and give you folks something to argue with. You never have told anyone here how price is established in Canada Agman, why not?
Your beleif that the packers are making every attempt to open the border is your beleif Agman. I put effort into helping my wife do the dishes too, but as little as possible so as to not disturb my enviable postion.
Happy Fathers day and don't think I hold your words against you.