Rumor or nightmare?

[Grassfarmer]

For the Canadians on the board - I heard a disturbing rumor today - that Cargill and Nilssons are in negotiations to transfer the High River plant to Nilsson ownership. :shock: :shock: :shock: :shock: Has anyone else heard this - if so surely this couldn't be allowed by the competition bureau?

 

[BlackCattleRancher]

I thought you direct marketed everything?

 

[Kato]

:shock: :shock: :shock: :shock: :shock:

Just when you think it can't get worse. :shock: :shock: :shock: :shock:

I'll keep my ears open. Check the jungle grapevine so to speak. Boy, this one better be just a rumour.... I have no faith in our so called competition bureau.

 

[Grassfarmer]

I thought you direct marketed everything?

No, I direct market a proportion of my production at the moment. This is a far bigger issue than me though. This would result in one company owning 90% of Canadian slaughter capacity - surely unprecedented in any country?

 

[Just Ranchin]

I struggle to see it. That High River plant has been too profitable for Cargill to sell.

 

[Grassfarmer]

Shrinking cow herd - excess kill capacity in the US, ability to still source Canadian cattle to use the afore mentioned capacity if they want to. It might just be the logical move for them. The thought of only having Nilssons here scares me - just look at what that has done to the cull cow market.

 

[Silver]

Shrinking cow herd - excess kill capacity in the US, ability to still source Canadian cattle to use the afore mentioned capacity if they want to. It might just be the logical move for them. The thought of only having Nilssons here scares me - just look at what that has done to the cull cow market.

A classic example of what can happen when a company is vertically intergrated right to producer level.

 

[Broke Cowboy]

Shrinking cow herd - excess kill capacity in the US, ability to still source Canadian cattle to use the afore mentioned capacity if they want to. It might just be the logical move for them. The thought of only having Nilssons here scares me - just look at what that has done to the cull cow market.

A classic example of what can happen when a company is vertically intergrated right to producer level.

That which seems - initially - to be a good thing has become a real bad thing.

Another potential nail in the coffin

Hope it is not true - but in all honesty it would not surprize me - making a controlled price quite simple for the big boys.

I wonder how much money they think we should earn?

BC

 

[Kato]

Just enough to keep us here, and not one cent more. :shock: :shock: