rkaiser said:
Tam -
Yes. Japan is on the verge of allowing age verified beef. America allows beef from UTM cattle. If any market would be opened by testing, it may only be over twenty or over thirty month cattle. May not be a lot, but may help out the biggest problem producers in this country have to deal with right now.
So Randy are you now taking advantage of the deal the government negotiated when they didn't buckle to the pressure to 100% test for market access? If the government would have buckled to the supporters of testing would Japan now be on the verge of taking beef from Untested Under twenty month old cattle? And if the Government wouldn't have negotiated them out of testing the Under twenty month would we have had enough testing capacity to handle the testing you were asking for?
We had an interesting discussion about age verification last night as well. RFID tags are paid for by producers. Do producers get anything back for their investment Tam? Interesting answers at the meeting, I'd like to hear yours.
I have to ask you, if there are two groups of calves same in every way but one is RFID'd with age vertification and the other is just tagged for birthplace which group of calves do you think will have more bidders if the buyers are looking to export the meat if not the whole animal?
We were told that there are some feedlot operators that will not be buying calves that don't have the RFID in them so I guess if they make your cattle more salable I would have to say that yes we will be getting something back with the tags. And if you take the time to age vertify with those tags then the buyer will know how old your animal is before they leave the feed lots for the slaughter house or on trucks hauling to the US. Just knowing for sure will eazy the minds of those that buy them think of exporting them or their meat.
I was thinking about this added cost to the producer and how it may actually become mandatory rather than voluntary due to the fact that the USDA likes this form of age verification over mouthing. Is this sounding a bit like another story yet.
What extra cost are you talking about Randy You tag your cattle already that is manditory in Canada If the feedlot operators aren't going to buy your cattle unless they are RFID'd then wouldn't you take that added cost so you can access the largest amount of buyers for your cattle anyway. The cost of age vertifing is the time you take to register a date of birth. And if that makes selling your cattle eazier because the buyer is sure of how old the animal is and weither it can be exported in a certain age classification would that not make them worth more to the buyers and you?
In the fear world of CCA. If we test for market access, we may have to test for more customers than we like. Thus added cost to the packer.
Randy if you tell one customer you will test for him so you can access his market, how are you going to explain that to the rest of your customers that are wondering why you aren't testing for them? Are you going to tell them that the other customer deserves it but they don't? Once you start down the road of testing for market access it is to late to back out if all your customers expect to be treated the same and you don't have the capacity to follow through.
I thought we had already discussed that the true reality of the beef industry is that any added cost to the packer could and probably will be passed back to the producer. So it you are worried about the cost of a $2 or $3 tag that will make your cattle more salable what are you going to do when the packer tells the feedlot guy he has to pay $25 dollars less for the fat cattle to cover the cost of a test. and in turn the feeder tells you he has to pay you $25 less for your calves to recoup the money he gave up to the packer to cover the cost of the test?
Hearing more talk of $25.00 testing. How much are RFID tags in your neck of the world Tam?
Well Randy it didn't cost us $25 dollars and the buyers knew how old the animals we sold were. The packer will also know if they have to be tested and if they qualify to be exported to Japan if that market opens up to Under twenty months old. So I would said that is a beneifit. Another beneifit is the time the new tags will save if another BSE positive animal is found. If we can cut the time of the investigation down to days instead of weeks like other investigation have taken that will beneifit the whole industry in credibility in the eyes of our trading partners. What would the BSE problem we have, had cost us if we hadn't had the technology that we did have? Improving on it can only save us even more if another case is found.