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Cattleman

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I have a couple simple questions for the R-Calfers. What is your long-term vision of the U.S. beef industry (where do you see the US beef industry in 10-20 years?) What measures are you currently taking to make this a reality?
Any comments?
 

rancher

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I would like to see us in 10 to 20 years making a profit. Not losing the industry to lower costs imports of other countries that send us beef, but don't want ours. I see the packers having some competition from the Canadians packers on who can add value and make money too. We as a producer can not compete against lower cost countries, we have too much uncontrolable overhead to deal with. I see the nation as having a choice of where their food comes from, if they want to buy USA they can, if they want to buy cheap imports they can, but they have a choice. I say we need to stop and think about if we want to be come chicken farmers.
 

Cattleman

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Thanks rancher, but does this not imply some sort of protectionism in order to keep out cheap imports?? You also make a valid point about consumers having choice, but if they can buy cheap imports at 75% of the price, (and consumers are cheap, and don't really spend the way they say they will) then what are you going to do?
 

Tommy

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Cattleman...but if they can buy cheap imports at 75% of the price, (and consumers are cheap, and don't really spend the way they say they will) then what are you going to do?

Have you ever been in a Sears store Cattleman? They sell higher priced American made Sears tools along with cheaper foriegn tools. Which ones outsell the others?
 

rancher

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I think the last one for the day is about done calving.

Cattleman would you answer the same questions you ask R-calf. Thanks.
 

agman

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Tommy said:
Cattleman...but if they can buy cheap imports at 75% of the price, (and consumers are cheap, and don't really spend the way they say they will) then what are you going to do?

Have you ever been in a Sears store Cattleman? They sell higher priced American made Sears tools along with cheaper foriegn tools. Which ones outsell the others?

Response...You are missing the point Tommy. How much profit margin is being absorbed by those cheaper foreign tools. It is sufficiently large that we only have three or four manufactures in the U.S who make all the tools no matter what the brand. Ultimately those tool makers will be gone if they do not learn to compete. Protectionism only breeds inefficiency, the opposite of what is required to survive long term. Have a great day.
 

Les

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The cheaper tools are usually of poorer quality right? Is the cheaper imported beef of lesser quality than the US beef?
 

Cattleman

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The beef industry needs to have a market to serve, and all stages of the beef production system need to be profitable. This is what is needed, and if this is the case the industry will expand, as people capitalize on the profits. Profit margins in some sectors may narrow depending on the type of business you want to be, but the top managers will still be able to make a profit through proper economic decisions, and taking advantage of the poor supply chain linkages that currently exist. So look out htose of you who raise cows...because you raise cows!! You may be in trouble.
I think the strength of the our industry is to serve customers who want grain fed beef. But we must remember on delivering a quality product because any slippage in quality and we can't compete against all the cheap beef on the world market.
To dable in this high quality market we need to not only compete against cheap beef, but also against pork and chicken. Therefore in order for our beef industry to expand (which I still see potential for, especially in Canada, as we may only have the efficient and progressive producers left targeting high quality markets) we need to be efficient through the supply chain, and have a premium product, because that is the only means we have to compete. It becomes a juggling act.
Overall, I feel the market for grain fed beef is somewhat limited, because of the high cost, and it is mainly a focus of Canada against the U.S. Right now Canada is moving forward in great strides, to be more efficient in the long term, and I think this will be at the expense of the less progessive U.S. beef industry. Rancher as you said, consumers want to know where there beef comes from, we are way ahead of the U.S. there, we are gaining new slaughter plants that are market focused not losing them like in the U.S.

On another note, I think that most of the gibberish that goes on in here is useless, and people have to face the facts....look at what has been dealt to them and decide how they are going to make the best of the situation and move on!!
 

Shep

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I have a couple simple questions for the R-Calfers. What is your long-term vision of the U.S. beef industry (where do you see the US beef industry in 10-20 years?) What measures are you currently taking to make this a reality?
Any comments?

I think it is to cash in while the money is good and then sell it when it goes in the tank, or else get into the sheep business... :wink:
 

Bull Burger

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rancher said:
I would like to see us in 10 to 20 years making a profit. Not losing the industry to lower costs imports of other countries that send us beef, but don't want ours. I see the packers having some competition from the Canadians packers on who can add value and make money too. We as a producer can not compete against lower cost countries, we have too much uncontrolable overhead to deal with. I see the nation as having a choice of where their food comes from, if they want to buy USA they can, if they want to buy cheap imports they can, but they have a choice. I say we need to stop and think about if we want to be come chicken farmers.




agman said:
Protectionism only breeds inefficiency, the opposite of what is required to survive long term.




Look at the difference in thinking. Rancher wants a protectionist type market for his cattle, but hasn't looked at the origin tags on his auto parts, coats, shirts, shoes, tools, computer parts, electronics, tires, household appliances or all the other inputs I can't think of right now. The ranchers around here bellyache about the availability of lumber (because of liberal shutdowns on forest thinning), but don't mind at all when the local lumber yard can get it out of Canada.


Summary: You can't have it both ways. If you shut down all beef imports, but a pickup cost $80,000, a shirt cost $150, a tire cost $500, or the cost of living for a family of four was $100,000, would you be better off?


I remember a John Wayne quote from years ago:

"Life is tough, but it's tougher when you're stupid"
 

rancher

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Rancher wants a protectionist type market for his cattle, but hasn't looked at the origin tags on his auto parts, coats, shirts, shoes, tools, computer parts, electronics, tires, household appliances or all the other inputs I can't think of right now.


That is a lie, I look the orgin tags on most all I buy.

Sorry But I am against NAFTA, CAFTA and all the other ones they can think up.

Are you calling me stupid?



I remember a John Wayne quote from years ago:

"Life is tough, but it's tougher when you're stupid"
 

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