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More Canadian slaughter capacity coming online

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SASH

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Tyson Boosts Canada Beef Output as U.S. Bans Cattle (Update1)
May 11 (Bloomberg) -- Tyson Foods Inc., the world's largest beef processor, said it will boost production capacity at a plant in Alberta by 24 percent next month as a ban on Canadian cattle imports limits supplies for the company's U.S. facilities.

A $17 million expansion at the Brooks, Alberta, plant will increase production capacity to 4,700 head of cattle a day from 3,800, Springdale, Arkansas-based Tyson Foods said today in a statement. Tyson is running its U.S. beef processing plants at reduced levels because of the shortage of finished cattle.

The expansion ``will help address the backlog of cattle caused by the continued closure of the U.S. border,'' Chief Executive John Tyson said in the statement. Tyson Foods historically gets about 3 percent to 5 percent of the cattle it slaughters from Canada, the company said.

The U.S. meatpacking industry will permanently lose jobs to Canada unless the ban on Canadian cattle, imposed two years ago after mad cow disease was found in Alberta, is lifted, Agriculture Secretary Mike Johanns has warned. In March, he said Canada's processing capacity had increased 20 percent in the past year and may increase another 10 percent by the end of 2005.

The expansion at Tyson's Brooks plant is expected to create as many as 300 jobs, the company said.

Injunction Blocked Imports

The U.S. had planned to resume cattle trade with Canada on March 7. A federal judge in Montana halted the plan before it could take effect, ordering a trial on a ranchers group's argument that Canadian cattle posed a threat to U.S. consumers and livestock. The trial is set for July 27.

The U.S. Justice Department, joined by Tyson Foods and other beef packers, asked the U.S. Court of Appeals for the Ninth Circuit to overturn the judge's decision and allow imports of Canadian cattle to resume immediately. Tyson, in its brief to the San Francisco-based court, said the judge's order barring shipments of younger cattle was ``riddled'' with errors.

``Given the risk management system in place between Canada and the United States, there is no basis for barring the importation of cattle less than 30 months of age,'' the company argued. Both the U.S. and Canada require beef packers to remove the spinal cord and other tissue thought to contain the agent that causes mad cow disease at slaughter.

Before the import plan was halted, the USDA had estimated Canada would ship about 1.8 million head of cattle to the U.S. this year. The U.S. slaughters about 35 million head of cattle annually.

All four confirmed North American cases of mad cow disease, which has a fatal human variant, were in animals born in Canada. They include the dairy cow found with the disease in Washington state in December 2003.

Shares of Tyson Foods rose 14 cents to $18.34 at 1:11 p.m. in New York Stock Exchange composite trading. The stock has fallen 6.9 percent from a year ago.



To contact the reporter on this story:
Daniel J. Goldstein in Washington at [email protected]
Last Updated: May 11, 2005 13:19 EDT
 

Big Muddy rancher

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Sandhusker said:
Isn't Tyson a US company?


Yes but they operate a large packing plant at Brooks Alberta. Didn't R-Calf tell you that? It would be nice if we could get other companies as well but were not in a position the turn down any increased capacity.
I really feel sorry for the US producers that are going to be forced to ship cattle farther because of plant closures because of the lack of canadian cattle. :cry2: :cowboy:
 

Sandhusker

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SASH said:
Sandhusker said:
Isn't Tyson a US company?

What's your point? A large percentage of companies up here are American owned.

My point is we're bring told by a few that we need to open the border because are losing packing capacity to the Canadians. Tyson is based in Arkansas, not Alberta.
 

Kato

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Unfortunately we have no choice as to who decides to set up shop here. We actually live in a free country, imagine that.

We'd far rather it was Canadian companies we were dealing with, but we don't have the luxury of putting up a fence to keep the Yankeedoodlers out. :wink:

The bottom line is that these big companies do not care about us or you. Profit is all that matters. They are using the current situation to advantage, as any profit driven entity will do.

It would be so ironic if the closest slaughter facilities that Montana had access to were in Alberta, wouldn't it? Imagine being paid in Canadian funds! Now wouldn't that be something. :?
 

Les

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hey kevin- nebulizar BOOOOOOOOO HOOOOOOOOOO Mighty big words for such a little man ( I Use the word man loosly) Too bad your reply made no sense at all. If this is the best you can do dont waste your time typing litte fella.....Swine like your self??? did you just call your self a PIG? tell me it aint so pigmy (pun intended) Oh and have a nice day :D 8)
 

Les

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MLA that must be pig **** list i guess huh? lol glad to be off his list for sure
 

Silver

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Well, Les, I guess even the uninformed have opinions. At a time like this I think of a Pierre Trudeau quote: "I've been called worse things by better people..." :wink:
 

Silver

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Getting back to the original thrust of this thread..... (funny how one person can lower the discourse to a pre-school level with one reponse)

I don't see what Tyson being American has to do with anything. Who cares? Chevrolet isn't Canadian either. But we are happy to have them here. They hire Canadians, and contribute to the economy.
I know Oldtimer, all three hundred of these new employee's will be living in the same house and selling crack to kids.
But the fact is this country is full of American companies, that's just reality. And I'm ok with it.
 
A

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Sandhusker: "My point is we're bring told by a few that we need to open the border because are losing packing capacity to the Canadians. Tyson is based in Arkansas, not Alberta."

As always, your point is moot. The number and location of packing plants is a determining factor in the price paid for live cattle due to the costs of shipping.

Have you ever heard the concept of "BASIS"????? Don't suppose these high fuel prices contribute to the prices paid for cattle that have to be hauled do they????

USE YOUR HEAD!!!!

It's times like this that make me shake my head in disbelief that you actually lend money to people.

The issue is not WHO OWNS THE PLANT, the issue is WHERE THE PLANTS ARE LOCATED.

Pepsi and Coke have proven that it only takes two to have competition while the beef industry has 5 major players and their plant location determines how much freight you are going to have on those cattle.

Do you think a Washington producer will be more profitable selling his cattle to a local processing plant or shipping them to Greely, CO????



~SH~
 

HAY MAKER

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SH,we all know that shipping costs are minimal compared to the money we have lost due to market manipulations,I think ILL do like you and some of the packer backers,IM gonna sell most of my cattle ,buy packer stock then what ever the packers beat me out of by manipulating markets I will make up with my packer stock.Hell I might like this packer buisness,get rid of these boots and jeans get me some western cut suits and ostrich skin boots make a living with my mouth instead of my back.gettin tired of cow dung on my boots anyway.......................good luck
 

Mike

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SH:"Pepsi and Coke have proven that it only takes two to have competition while the beef industry has 5 major players and their plant location determines how much freight you are going to have on those cattle."

Pepsi and Coke prove only that government intervention and squashing the competition is dictated in the corporate boardroom. Competition has been stepped on like a roach.

Example: Royal Crown Cola was the first on the market with "Diet Rite" cola. With that product "RC" began dipping into "Cokes" profits. Lo and behold a short time later "cyclamates" were banned by the FDA. There are books on how crooked this business is/was. You'd be surprised at the manipulations and hostile takovers in the soft drink industry. Have you looked at their price increases lately?

If we go by your assimilations of competition, there will be only a few large corporations running the entire agribusiness show here.
ADM didn't get in trouble for leading the church choir.

Scott Kilman in the Wall Street Journal reports that ADM's total legal tab "for one of the biggest global price-fixing scandals of the 1990s" has now climbed to more than $250 million, including criminal fines, civil settlements and lawyer bills and that tab "will probably rise as more governments pile on" as "antitrust regulators in Mexico and Brazil are mulling whether to levy their own penalties."
 
A

Anonymous

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First Hayseed, I have told you a number of times I DON'T OWN ANY PACKER STOCK. Never have. Yet, being the liar you are, you continue spouting off this same BS.

Second, you cannot prove your packer market manipulation theory. Judge Strom threw the misled jury's verdict out the door.

A feeder needs 1000 calves. He buys 500 on forward contract and bids less agressively for the next 500 because he already has 500 bought. That's the depth of the packer blamer's market manipulation conspiracy theory.

Poor you! There, feel better now?


~SH~
 

HAY MAKER

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~SH~ said:
First Hayseed,
I have told you a number of times I DON'T OWN ANY PACKER STOCK. Never have. Yet, being the liar you are, you continue spouting off this same BS.
Second, you cannot prove your packer market manipulation theory. Judge Strom threw the misled jury's verdict out the door.

A feeder needs 1000 calves. He buys 500 on forward contract and bids less agressively for the next 500 because he already has 500 bought. That's the depth of the packer blamer's market manipulation conspiracy theory.

Poor you! There, feel better now?


~SH~


I wouldnt expect you to tell the truth,prarie dog,the fact you wont admitt to owning packer stock just proves my suspicions,and confirms your motives,damn lieing prarie dog ,manipulate markets and lie like a damn rug................good luck PS the CAPTIVE SUPPLY REFORM ACT will remedy this problem to many cattle men demanding it.
 
A

Anonymous

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$5000 to Haymaker if he can prove that I own packer stock?


Watch this..............



~SH~
 

Big Muddy rancher

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HAY MAKER said:
SH,we all know that shipping costs are minimal compared to the money we have lost due to market manipulations,I think ILL do like you and some of the packer backers,IM gonna sell most of my cattle ,buy packer stock then what ever the packers beat me out of by manipulating markets I will make up with my packer stock.Hell I might like this packer buisness,get rid of these boots and jeans get me some western cut suits and ostrich skin boots make a living with my mouth instead of my back.gettin tired of cow dung on my boots anyway.......................good luck

Oh haymaker one of little wisdom, It costs $1,400 to get a load of cattle from our place to Alberta. That's $14 dollars a head for calves and $28 dollars a head for fat cattle. How many feeders would be happy making $28 dollars a head. Isn't that $2 more then the packers were said to be making. Maybe you should become a truck hater as well.
Oh yea I thiught you wore canvas running shoes not boots as the boots "chafed your thighs".
 

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