DiamondSCattleCo
Well-known member
Northern Rancher said:1) If salesbarns are capable of doing such a great job for the producer-how come any other alternatives ever started up.
2) You don't need to be a huge producer to sell into a value added grid.
3) I always get the local barns to bid on my cattle before I place them on feed-there so busy trying to rape you on the shrink or the sortnot once
4) If were going to get the government to legislate how we can sell our product we might as well just have state farms and work for a wage-it was sure a success over in Russia.
1) I guess we'd have to ask the guys who first started going around the barns and find out why. I consider these guys to be on the same field as the guys who skip around the Wheat Board, ignoring that in the past 70 yrs the Wheat Board was shut down 3 times and each of those 3 times, wheat prices dove into the ground.
Cattle and grain producers are in competition with one another. You and I both know that if every single producer sold to a common place at a common price, there would be one SOB down the road offering his stock up at a couple cents/lb less so he could get it delivered early or for some other concession.
2) The average cattle herd size in Saskatchewan is 50 adults. I'm above average size, yet I can't sell to Excel in Moose Jaw without a liner load. I know there are other packers outside of Excel, but by the time I pay the shipping to them, I would have been further ahead to do what I'm doing right now: backgrounding to 8-900 lbs and sending them down the road.
3) I'm not sure whose idea it was to have sale barns bidding for animals and guaranteeing prices, but it wasn't good for producers. NR, I dunno if you ever went to Tisdale auction market, but that place was a cesspool of crooked dealings and mismangement. In my little example, the sale barn was intended to be just that: a barn where people brought their animals to be sold. No price guarantees. I'm not sure if you've ever dealt with Kelvington, but to my way of thinking, they've got it right. No price guarantees, their employees are not allowed to work both sides of the market (arranging for producers to bring their stock in AND buying for packers/feedlots during the sale), and they don't run a regular sale anymore, just pre-sorts.
4) I think you're going a little extreme. The stock market is a good example of regulated single desk trading that works in a free market society. The Wheat Board is another (yes I know its been mismanaged, but that doesn't change that its a good idea). Individual producers do not have enough market power to go up against the other market forces, and still stay in business, so the playing field needs to be levelled. Otherwise, individual producers will be gone, and we'll be left with corporate cow/calf producers and those small individuals will simply be hired hands. If you don't believe it can happen, look at the grain farming community right now.