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Anonymous
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Randy: "Laws change every day SH. Free enterprise is not written in stone. Packers, just like every other business in the free world lobbies for change that will benefit themselves."
Of course everyone lobbies for their own personal benefit.
Randy: "I don't know if it means a change of law, but do you honestly think that two years worth of excessive profits in one sector of the beef industry vs. excessive loss in the other should go on forever."
Where did that come from?
I can't believe you can derive such a conclusion from anything I have posted.
When did I suggest excessive profits in the packing industry in Canada should go on forever or that producers should not work to capture that processing value themselves?
I sure didn't say that or even imply that!
I think you have a reading comprehension problem.
Randy: "Should we just continue to watch equity erode on the farm while packers have a hayday, hayyear, haydecade?"
Excessive packer profits won't go on forever.
One of two things will happen:
1. The border will open and you will once again have enough slaugher capacity options for your cattle in both Canada and the U.S.
2. Processing expansion in Canada will take place to account for all of the cattle produced in Canada putting competition back in proper order.
Write it down and hold me to it.
This is so elementary!
Today: Canadian cattle numbers exceed Canadian slaugher capacity.
Tomorrow: Canadian cattle numbers equal to Canadian slaughter capacity.
Why is that so difficult for you to understand and accept!
Either the packers will increase their slaughter capacity to restore competition or the producers will do it themselves. Either way, packer profit margins will narrow back to a competitive situation. When there is dollars to be made, someone will make those dollars until competition squeezes out the less efficient processor. The more efficient processor will pay more for cattle than the less efficient processor.
Randy: " You have lumped myself and others in your packer blamer category while not considering any of our movement forward in our "Free Market" producer ownership proposals. Iown beef til it hit's the restaurant plate. I am a director for BIG C who has a plant proposal with producers owning the plant."
I sincerely commend you for your efforts to control your own financial destiny. That's wonderful!
Nothing I would rather see!
Instead of wasting time blaming the large corporate packers for taking advantage of your situation of having more cattle than slaughter capacity, I'd much rather discuss Big C and similar producer ventures.
I don't know where you can say that I have lumped other Canadian producers into the packer blaming category. You're the only one really complaining about it.
Randy: "My point about packer profits in Canada is that this is the most severe event that the North American beef industry has ever experienced economically. Your complete lack of interest in discussing this shows total disregard for producers of Canada, who brought none of this on themselves. Sure it's legal, but is it not worthy of any discussion. I am sure that if the system would somehow work (which I know is impossible) whereby producers pocketed mutimillions and packers were going broke, discussion would run rampant."
Once again, what good does it do to discuss it unless you want to discuss what you are going to do about it?
Complaining about it doesn't change it. Discussing solutions does!
Randy: "Opening the border to boxed beef created a new market for product, but created no new competition. In fact it shut out the plants that could not access fats from Canada, thus eliminating competition."
Opening the border to boxed beef did not create a new market for product. It resumed your traditional market for product.
Where do you think your cattle market would be today if it was not for the fact that you are exporting beef to the United States?
How can you possibly believe that you would be better off without the U.S. market TODAY?
What do you mean it shut out the plants that could not access fats from Canada? Explain yourself! You're talking in circles and not making sense.
Randy: "SH you are lost. Your perception is blurred by your entrenched thought. You are the one who cannot think and reason beyond blaming anyone who sees life different than you and maye Agman."
Your inability to disprove anything I have stated with opposing facts shows who is lost. Your comfort zone is making these types of discrediting statements when you can't contradict anything I have stated WITH OPPOSING FACTS.
Randy: "What kind of packing proposal would include marketing predictions based on today's market."
Where did that come from?
Randy: "Producer owned plants may have a chance to bid against Cargill and Tyson and force them to pay a fair price once one of those two things happen, but the profits made in two years by these two mutinational giants have insured them a major role in Canada for many many years to come."
Why would producer owned plants have to bid for any cattle????
They should have their own captive supply of cattle from their producer investors.
If Tyson and Cargill could buy cattle away from these producer owned packing plants what does that tell you about competition?
If there is no competition, they couldn't get the cattle bought could they?
Congratulations, you have successfully defeated your own argument again.
You seem to be under the assumption that there is no competition BETWEEN Cargill and Tyson and that is absolutely false. The only reason they BOTH have leverage now is because Canada has more cattle than slaughter capacity. Why is that so hard to understand?
Canada would not have more cattle than slaughter capacity if both Cargill and Tyson expanded their slaughter capacity to account for those cattle. To assume at that point that there would be no competition due to only two players is to suggest that Cargill and Tyson are not competing against eachother for the cattle.
Is that what you believe?
Come on, challenge me on this and bring the facts that you have to support your assertion that Cargill and Tyson are not in competition with eachother to buy fat cattle ONCE SLAUGHTER CAPACITY EQUALS THE NUMBER OF CANADIAN CATTLE.
Randy: "How about me saying things are just fine down here on the farm SH, as long as I just stack bales and keep my mouth shut. And if I go broke it will be all my fault. That's what you want to hear from me isn't it."
No, I want to hear how you are going to assure that you never find yourself in a situation without a market for your beef and how you will never find yourself in a situation of more cattle than slaughter capacity.
I want to hear SOLUTIONS to the problem! We already discussed the problem over and over and over.
~SH~