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Ranchers.net

In another thread that has been derailed, I asked RandyK for clairification on the plan of BigC and he confirmed they wanted a per head check off type payment from every animal sold in Canada.

Number 1 problem, this means the gov't is picking a favorite business.

Number 2 problem, all cattle sold to other packers, including producer owned, would have to pay. This would be a direct attack on the freedom to conduct business on a level field.

Number 3 problem, beef from a plant subsidized in this manner breaks free trade agreements with our trading partners.

Randy also suggested the payment would be backed with 1 share in the plant, making everyone who sells 1 animal a part owner in said plant.

Problems of logistics would be huge. All shareholders get notice of earnings etc, some of those shareholders could possibly be Cargill and Tyson.

A plant would have a hard time competing for cattle if they give their competitors a balance sheet.

These are just very basic problems with the plan. And I might add with most producer backed ventures right now. Expertise needs to be sought before a good plan can be established.

For example 1 plant proposed near Lethbridge had the fellow pushing it say:'we just need to get the cattle killed and the beef will find markets'. Although I agree we need slaughter capacity, any plant has to have a marketing planfor the beef they produce BEFORE they have it. Without having a market, or knowing the price the beef will bring, makes any plans virtually worthless.

If anyone wants to engage in civil debate about this please post.
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