Tommy said:
Tam...Are you trying to distract me again Tommy You didn't answer my question where is the US going to get the beef to cover your domestic demand while you compete with us in the world arena.
Not at all Tam, my mind will just not operate over two or three questions at one time.
Aren't we taking boxed beef from y'all right now? I also believe we are taking cattle from Mexico along with trim and beef from Australia and New Zealand.
You are refering to Bullards statement that we do not produce enough beef to supply our own market. The statement is right if we do not import any, but we do, so your question is a mute point.
Now answer my question that you forgot...
Why had you rather send us most of your beef and then let the packers send it to Japan, instead of shipping it to them direct?
Remember you increased imports of Beef by over 20% while you didn't have ANY exports. This increase was just to cover domestic demand. Yes Some of your increase came from Canada in the means of BOXED beef.
But If we have to cut our exports to you so we can supply Japan where is the beef going to come from to cover our decrease in exports to you?
and where will the beef come from that will cover the beef you now sell to the domestic market that you will no longer sell to them as you will be using it to sell to Japan in the act of competeing for an export market. Do you think Austraila and New Zealand, that now have their foot is in the door in Japan, should cut exports to that market so they can supply the US with more beef just so you can compete in the world arena. Come on Tommy telling me you are covering your domestic beef demand with imported beef is not the answer as if any one of these countries that you are importing from cuts exports to tha Pacific Rim countries so they have the beef to increase imports to you, they have to know that they are just going to add a competeing market into the mix. Why would they do that? We all know that the Pacific Rim markets are the High dollar markets or the US wouldn't be fighting to get them back.
The answer to your question is we would rather not but since we don't have the slaughter capacity to harvest all our cattle,
YET we were forced to sell our cattle to US packers. But now that we are increasing capacity in the future we may just ship all our beef direct to the customer and by pass the US altogether. But, If we do that Tommy what do you think that will do to the slaughter plants in the US. I'll tell you, some will close which we have already seen happening because you don't have enough cattle to keep them busy which will result in less competition in the US market place for you cattle. Tell me Tommy what happens when competition for your product drops? Then the remaining US plants have to compete with a country that has a good supply of cattle and some credibility left when it comes to the handling of a BSE issue. What do you think those plants will have to do to get your product sold? Maybe take less which will result in lower prices to you the producer. So be careful of what you wish for Tommy you historical high cattle prices are riding on it.