DiamondSCattleCo
Well-known member
Murgen said:and they would rather that the Cargills and Tysons of the world maintain a captive hold on our over 30 month animals
Okay, I need someone to explain to me why any packer would want to limit their market to North America, when the beef they are shipping to Japan grosses about $10/kg and within North America a kg shipped to the US from Canada grosses about $4/kg.
Econ, what is the packer gaining by the so-called captive supplies, on an OTM?
Actually, that was me Murgen.
As for the big guys shipping to Japan from Canada, its because they can ship from other countries with even lower cost beef (Australia, Brazil), and still sell for about the same price as Canadian beef. They've already taken care of Japan's total demand, so the only place left for Canuck beef is Canada and the US. They can sell all the over 30 stuff right here because our consumers are supporting us, so they have no reason to try and force it into the US.
And I apologize for the use of the term 'captive'. I don't mean to imply packer owned beef by the use of that term, but rather captive to a border. Our over 30 stuff can't go anywhere, and our between 20 and 30 month stuff is limited to one or two export customers.
Rod