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Cattle Economics

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Another great article from Sheri- which fits as true to the US market as it does the Canadian- just change the name when you read it....And in both countries the so called cattle organizations like ABP, CCA, NCBA- that long ago sold out to the multinational corporates still keep backslapping them....

From the Badger Newspaper online.

Culling all cowboys
15 December 2009

By Sheri Monk

So, the NFU has called for an inquiry into slaughterhouse and retailer beef profits. Don't hold your breath.
To the NFU's credit, they are the only producer group in Canada making any noise as the Canadian cattle industry bleeds from a 1,000 wounds.
The honest-to-goodness trouble with the NFU is that no one publicly takes them seriously. Privately, I've had all kinds of ranching folk tell me how much they appreciated and identified with the massive NFU cattle crisis report released last year. But no one's talking about it at the auction barns, coffee row or better yet, with their MP. Without public support, there is no public power and without public power, the government's ear will continue to dance to a different beat. And as far as I can tell, the cattle business is not a beat our federal government wants to patrol.
So what if the NFU are seen as a bunch of bicycling bolshevik radicals? I just want action – I don't care where it comes from, be it the NFU or Tiger Woods riding bareback on a Perkins waitress.
When I moved to Maple Creek three summers ago, all I knew about cows is that I liked eating them pretty good, but didn't much care to drink from them. That changed, rapidly. In the fall of 2007, the business was in the tank and the more I heard and saw of it, the more I wanted to learn. And what I found epitomized in one industry, all the negative ramifications of issues like corporate concentration, lack of competition, global, vertically integrated companies and free trade. It was the world wide WalMart effect, neatly packaged between two hamburger buns. And it made me sick.
Whether it began with government and industry group pressure to increase herd size to feed the world, or the federal government's sheer neglect in protecting the industry from the introduction of BSE, or free trade agreements which serve only the masters who promoted them in the first place, I don't know. But I do know the wreck is on and not even the most optimistic, naive seer in the country can predict a happy ending here.
It seems I drive by more and more land which needs fencing – a depressing sign that traditional grazing grass is being abandoned, cultivated, sold out to a culture which promises profit not in exchange for sweat or honesty, but for greed.
The NFU, with the help of an Albertan rancher, butchered a cull cow which would have fetched $340 at auction, but yielded $1,233 worth of hamburger and stewing meat at current retail prices. And make no mistake, cull cows aren't just ground beef anymore – they're used in pre-packaged, ready-to-serve roast suppers consumers pay a premium for at the grocery store. The NFU wants to follow the money through the processing plant and ultimately to the grocery stores. Slaughterhouses say they're not making money, retailers stick to the same story. If this is true, then the beef business in Canada may indeed be the only industry on the planet not administered by government or charity in which no one makes money. That's bullshit and we all know it.
And all the free market fanatics with your emails set on kill, hold your horses. An entirely free enterprise system is capitalist anarchy. Unregulated business may scream freedom to the ears of the elite, but in the real world, the one the rest of us have to live in, it's a disaster. We live in a free, democratic society. Yet we still have a justice system, police and citizenship and media who act as watchdogs. Where is the parallel system for policing business?
Oh, you'll find it in name, on letterhead and on government websites. But it's a paper dog and pony show, created to sedate the masses and lull the population into complicit compliance. And yes, I'm tired of that, too.
Instead of fixing the business with measures like a ban on packer-owned cattle and mandatory, price discovery on private and forward contracts, we try and bully our way into foreign markets. Armed with trade agreements, we pry our way between the legs of reluctant countries, hoping we'll just slide right on in, after Uncle Sam had his way with her first.
Sure, we'll fight COOL to the death and if you're going to die, why not go down as a hypocrite? We travel with "Eat Cdn. beef" stickers on our bumpers, we herald our beef with its Canadian stamp of approval in the grocery store cooler, but we'll cry like a toddler having a tantrum when our largest trading partner does the same.
There's not much I can buy these days that's made in Canada, but by God, if I see the name of our country on any label, I happily pay extra for it. The rule applies to clothing, toys, cutlery and toothpicks, but we have no legislation to ensure we know what we're putting in our mouths?
Look south, way, way south. Look at JBS and its bid to become the biggest beef bully in America. Look how South American beef is being finished now to North American standards and tell me you don't see what's coming.
We're being culled. We're hanging on the hook and we blindly pretend we can still touch the ground, even as we are drained dry.
What's been done to this industry, the home quarter of Canada's wild west, is deplorable. Not rising up to try and save it is criminal.
 
Sherry, you just about said it all. This is an excellent statement of your views that represents the attitude of most cow calf producers. I just wondered what you think of Sara Palin and her conservative agenda. Do you think if she made it to the White House that she would be able to make a difference? A lot of us would like to see her kick the good ole boys in the ash, but it really wonder if it's possible. Thank's Buck
 
Before reading this article i've never heard of this organization. It sure sounds like they are trying to get a very valid point out there. I've read articles stating that the retailers will take nothing less than a 45% mark up on the meat that they sell. As far as the Packers go, right now we basically have two operations buying Fats. Cargil buys one week and Excel buys the next week... real great for competition.
 
valleyhills said:
Before reading this article i've never heard of this organization. It sure sounds like they are trying to get a very valid point out there. I've read articles stating that the retailers will take nothing less than a 45% mark up on the meat that they sell. As far as the Packers go, right now we basically have two operations buying Fats. Cargil buys one week and Excel buys the next week... real great for competition.


How long have you lived in Canada and not heard of the National Farmers Union?
 
JRDbuilt said:
Well Im right there with Valleyhills im 21 and about to sign the paperwork for 226 acres in wilcox county GA.

Hope i can get it to bring in some income.

CJ

JRDbuilt, You planning on running cows on that 200 acres? I'm sort of in the same scenario...
 
Sheri Monk doesn't paint a pretty picture. But reality is ugly sometimes especially when the world free trade corpratocracy is the artist.

The walmartization of the world is well under way, just as North American legislators stood buy while our manufacturing heart was transplanted to china chances are they will stand by as our beef industry is gutted and moved to south america.

Walmart now the largest single retailer of beef in the USA competes on price
and just as North American consumers are enjoying Walmarts lowest prices for consumer goods chances are they can look forward to even lower prices at the meat counter.

Love turns the world but money greases the wheel!

By the way way I would love nothing more than to be proved wrong on this take!
 
We have an important opportunity right now to get the Department of Justice to investigate the handful of companies that control much of the food system. Can you take action to encourage the Department of Justice to break the monopolies?

How bad are things right now?
- Four companies process more than 85% of U.S. beef cattle.
- Two companies sell 50% of U.S. corn seed.
- One company controls 40% of the U.S.milk supply.
- Five firms dominate the grocery sector, ensuring that low prices paid to farmers aren't passed along to consumers at the store.


After decades of government officials looking the other way, regulators are finally acknowledging there might be a problem. Tomorrow, Food & Water Watch staff are participating in the first of several hearings being held by the U.S. Department of Agriculture (USDA) and the Department of Justice (DOJ) to hear about the state of competition in agriculture markets.
 
Are there still enough local private abattoirs in the USA and Canada to be able to direct market your beef? preferably by networking with neighbours.
I started an on farm shop when I was in the UK previously, selling "free range" beef and pork from the farm, and selling "free range" eggs, chicken, turkeys and lamb for neighbours.
I had started marketing beef when in NC, when I began my herd there, I had access to the local stores' butchery which was only being used for packing bought in meat, I had to buy in steers as the demand for the products I was producing as my promotional sales outstripped my potentia production by about two years of herd building, nobody felt they had time to take over the fledling business when I had to leave, an opportunity lost in my opinion!
In my present position, we have an on site abattoir, shop, sell on the internet, and have negotiated sales through the top food stores in the UK.
http://www.laverstokepark.co.uk/
 
Secretary Vilsack Announces Cattlemen's Beef Board Appointments
by USDA
Posted: Thursday, March 11, 2010 at 4:18PM EST

SOOO ARE they going to make a DIFFERENCE
WASHINGTON - Agriculture Secretary Tom Vilsack today announced 36 appointments to the Cattlemen's Beef Promotion and Research Board. All appointees will serve 3-year terms beginning immediately.

"These appointees represent a cross section of the beef industry and I am confident that beef producers and importers of cattle, beef and beef products will be well served by them," said Vilsack.

In 2009, according to USDA statistics, there were an estimated 950,000 farms with cattle representing approximately 93.7 million head of cattle at the beginning of 2010. Top producing states included Texas, Kansas, Nebraska, California and Oklahoma.

Newly appointed members representing cattle producers are: Barbara S. Jackson, Ariz.; Willem Bylsma, Calif.; Darrel C. Sweet, Calif.; Robert W. Buck, Colo.; Jeffrey L. Clausen, Iowa; Dean A. Black, Iowa; Daniel P. Herrmann, Kan.; Larry M. Olten, Kan.; Genevieve D. Lyons, La.; Andrew B. Salinas, Mich.; John C. Schafer, Minn.; David M. McCormick, Miss.; Kevin H. Frankenbach, Mo.; Kristy L. Lage, Neb.; Judith A. Reece, Neb.; Annalyn Settelmeyer, Nev.; Tamara A. Ogilvie, N.M.; Ernest B. Harris, N.C; Thomas A. Woods, Okla.; James C. Kesler, S.C.; Danni K. Beer, S.D.; Linda J. Gilbert, S.D.; Robert J. Reviere, Jr., Tenn.; Larry B. Pratt, Texas; Andrea W. Reed, Texas; D. Rudolph Tate, Texas; Bruce D. Dopslauf, Texas; Laurie L. Munns, Utah; Jane E. Clifford, Vt.; Larry D. Echols, W.VA; Martin A. Andersen, Wis.; Randall A. Geiger, Wis.; and Spencer A. Ellis, Wyo.

Newly appointed members representing importers are: Alberto J. Senosiain, Fla.; Andrew Banchi, Penn.; and Scott A. Hansen, Va.

The Board oversees collection of $1-per-head on all cattle sold in the United States, and $1-per-head equivalent on imported cattle, beef and beef products. In addition, the Board contracts with established national, non-profit, industry-governed organizations to implement programs of promotion, research, consumer information, industry information, foreign marketing and producer communications.

The 106-member Board is authorized by the Beef Promotion and Research Act of 1985. The secretary selects the appointees nominated by beef, veal, dairy and importers certified organizations.

USDA's Agricultural Marketing Service oversees operations of the Board.

USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).

Source: USDA
 
Whether or not they "make a difference" depends upon what you mean by "make a difference" doesn't it?

Previous CBB members have been very welcoming of suggestions from cattle producers. Hopefully that will not change. Hopefully, more cattle producers will share their concerns and suggestions with the board.

My main concern, as one who has worked very hard for many years, first to get the Beef Checkoff, and since then to keep it and to support it, is whether or not ALL members of CBB and all the staff and leaders make decisions in accord with the law and uphold the letter of the law creating and governing the Beef Checkoff.

mrj
 

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