Tam said:
Econ101 said:
Andy said:
I made the connection because the packer said they would pay a 25$ premium for cattle that could be sent to Japan. Then the first load I sent after the boarder opened i recieved a $25 premium. The kill data also had Japan as the pen number.
So it was a matter of age and age is a factor of shipment of
cattle out of Canada to its export markets. Seems the BSE issue is still a factor of what producers get for their
cattle in Canada. Does this sound right?
Can you explain why you refer to Canada while speaking about a premium that Andy recieved, his address says SD as in South Datoka. BSE seems to be a factor on what the US producers recieve also.
I would also like to know if you call US producers that sell to Tyson and Cargill when they are the highest bidders Brown Nosers? We are in the cattle business and are trying to survive. The Canadian producers have little choice to who we sell our fats to unlike those that sell to them in the US. If you don't like Tyson and Cargill gaining market power Thank R-CALF as they are the ones that handed the two Big US companies the extra time of captive supply on a silver platter. Both these companies may have recieved some tax dollars in the governments hurry to help out a struggling industry but I doubt it was anything close to the amount they pocketed because of R-CALFs prolonging the border openning.
And I'm glad you don't think Trade is bad when it comes to the 60 some billion dollars that the US does but damn any other county that has a bit extra to export if it cuts into the US profits right Econ? What do you think that 60 billion in export trade is doing to the prices producers in the countries the US exports to get for their product?
Tam, sorry I did not make the connection so apparent. Right now there is a back log of older cattle in both Canada and possibly the U.S. because of the way the BSE thing has been handled by the USDA. Under 30 month has more to do with percieved health risk than any thing else. Japan import rules prove that. As you can tell, I am very critical of the BSE issue and its consequences.
As far as cattlemen are concerned, they should get the highest dollar they can get for their cattle, no matter where it is. The PSA does not prohibit this from cattlemen. It does prohibit the packers from using this strategic buying as an exercise of market power. Cattlemen are not to blame for the exercise of market power by those with market power. It is the fault of those with market power and no liability is on or should be considered by cattlemen who have no market power. The PSA is a law to curb the market power of packers, not cattlemen. As I stated before, there is another law, the Capper Volstead Act, that allows cattlemen to "collude" and use market power to further their interests. It is not used very much. Someday I may go over the Goldkist (poultry) cooperative's failure to do this--maybe for Jason as he brought up this tactic. Tyson's abuse of market power was one of the reasons Becker (CEO of Goldkist) used to take Goldkist out of the cooperative form. It is interesting to me that there was such a move within the USDA to kill the exemptions of agricultural orgs. from anti-trust provisions. This to me shows the intent of some of the legal talent within the USDA (JoAnn Waterfield was involved in this one also).
Here is the applicable part of the law:
§ 17. Antitrust laws not applicable to labor organizations
Release date: 2005-08-01
The labor of a human being is not a commodity or article of commerce. Nothing contained in the antitrust laws shall be construed to forbid the existence and operation of labor, agricultural, or horticultural organizations, instituted for the purposes of mutual help, and not having capital stock or conducted for profit, or to forbid or restrain individual members of such organizations from lawfully carrying out the legitimate objects thereof; nor shall such organizations, or the members thereof, be held or construed to be illegal combinations or conspiracies in restraint of trade, under the antitrust laws.
As to your other question of calling people brown nosers, I do not believe that the average producer who sells to the highest bidder, whoever it is, falls under that category. That name is reserved for those who justify the packer's position, not the producer's position. Big difference. The PSA has that difference as a part of its core. The court did not understand that difference or why it is there. Another reason why judges should not assume the responsibilty of making law. That is not their field of expertise. The 11th circuit can not even discern the difference between two common words, "and" and "or" in their interpetation of the PSA. Pretty basic stuff. Pres. Clinton started the whole "change the meaning of words" lawyer B.S. when he didn't know the meaning of the word "is". Tyson just convinced the 11th circuit to do the same.
The thing I don't like about the Canadian situation, is that because it is an international situation, Tyson's and Cargill get to not even consider the anti-trust laws of the U.S. with that supply. Canadians should make sure that their laws and the U.S. laws like the PSA and the Robinson Patman Act and the Capper Volstead Act do not apply to that supply. That problem should be remedied as I have advocated before.
As to r-calf. I think the above paragraph encapsolates thier position pretty well, but I don't know for sure. As SH has pointed out time and time again, rcalf had little effect on the trade. The policy makers at the USDA, who are doing whatever the packers want, have had the real impact. Rcalf is trying to hold them to some sort of scientific standard instead of a political standard. R-calfers are a little upset, perhaps, that Canadians subsidized the packers in Canada with taxpayer money and are not taking ANY steps to inact laws such as the PSA, the Robinson Patman, and the other anti-trust laws that should be enforced across the border if you want to have an open border. In that respect, they have a point.
As to your points on other trade issues, I am probably closer to your view on trade on the points you make than you realize. It is just hard for you to see it. I have already posted where CAFTA is going to hurt indigenous agriculture in CAFTA countries. It was another trade deal for large corpoerate interests to the detriment of producers. Probably why the underlying rules required for its implementation are not being enacted in the CAFTA countries.
Thanks for letting me clarify my position, Tam. I look forward to your response and input.