Rancher,
You asked why the packers are against it?
Packers of all sizes testified at the "M"COOL listening sessions. Those testimonys are available at a USDA website. The reason that was stated repeatedly is that any benefits would be greatly overshadowed by the costs of segregation. That was their primary concern.
Luke: "As I can see it, the Canadians are angry because an american organization is looking out for their producers."
No, Canadians are angry because an American organization lied about the safety of their beef to stop Canadian imports after they had signed a free trade agreement with Canada.
Canadians are angry because R-CALF stated that Canadian beef is "unsafe" and a "high risk" because Canada had BSE in their native herd. Now that the U.S. has had BSE in their native herd, R-CALF says we have the safest beef in the world.
R-CALF lied and deceived to stop Canadian imports.
Luke: "Simply, the leadership of R-CALF believes that they are doing good for the producer and in the long run will help the american producer."
That's what they believe but they are wrong.
Luke: "As I can see it, SH beleives that we are working in a capitalistic society that has no barriers to entry. Barriers to entry limits the number of packers and retailers that are present in the market place. Barriers to entry enable large producers to create monopolies or ogolopolies in order to drive down prices. Barriers to entry within the meat retailing and packing industry include capital, access to customers and regulation."
Your "barriers to entry" argument is soundly defeated by the fact that USPB now owns all of National beef and remains competitive against the largest packing companies.
Packers cannot drive down prices. The prices packers pay for cattle is determined by the prices they each receive for beef and beef by-products and how much they have to pay in relation to their competition's margins.
Packers controlling markets is a myth that can easily be proven wrong with actual packer profit figures.
In a market that was truly controlled, prices would have no reason to move at all.
Another fact that disproves this conspiracy theory is the fact that live cattle prices track with boxed beef prices and always have.
To believe that the packing industry is controlled is to believe that there is no competition between the largest packing companies.
You take a position by offering statements but you provide no proof to back them.
Luke: "Pulling producers into the modern age of competition will help the industry as a whole."
I agree which is precisely why the source verified branded beef programs in existance today are way ahead of "M"COOL even if it was enforceable and differentiated more than 5% of the beef consumed in the U.S.
Bottom line on NAFTA and our existing trade agreements for beef - $1.3 "BILLION" dollar surplus. Those are the unrefuted facts of trade in our industry. All your talk about "clusters" and "undeveloped countries" will not circumvent this fact. Mexico has less income than the U.S. and our beef trade with them is a net surplus to the U.S.
Luke: "M"COOL enables differentiation."
Source verified branded beef programs offer MORE differentiation.
Luke: "That being said, most food wouldn't have a label. Warning labels would not be on every piece of equipment."
Nutrition labels and warning labels offer more pertinent information to consumers than a generic country of origin label on commodity beef.
Apples and oranges comparison.
Luke: "Mandatory regulation is not the first choice on any producer's wish list."
More government intervention is R-CALF's solution to every issue.
Luke: ".....as our market changes we should no longer market a generic product."
That is exactly what you are doing. Marketing generic commodity beef with a generic country of origin label.
Source verified branded beef programs that offer value to consumers has stepped away from a "generic" product.
A generic Country of origin label on commodity beef is still commodity beef.
Luke: "My thoughts on this issue come from a loose collection (not primary research) of the arguments."
Obviously!
Luke: "When production of your commodity is more efficient in another country, why won't the packers move?"
You just answered that question with..........
Luke: "The only thing that will eventually help the cattle industry is that the product is heavy and non-durable, making it hard to ship, therefore production must be within a reasonable distance of the destination."
Luke: "My belief, subject to disagreement is that the American producer can no longer be without a "branded" product. That "brand" of quality and distinction should be "born, raised and slaughtered" in the USA."
I agree that the American producer can no longer be without a "branded" product which is why the free enterprise system offers so many various branded products that go much further than country of origin, they offer guaranteed tenderness, flavor, pre-cooked, organic, etc. etc.
All of which have more value to consumers than a generic country of origin label on commodity beef.
Luke: "So, in the meat industry, why the big stink about labeling based on origination?"
First off, there is no comparison to tracking most products and a beef carcass that becomes 300 different packages of beef sent to different destinations. Another apples to oranges comparison.
The tracking requirements and the expenses are not even close to the same. A lot more is required to track the origination of a package of beef than most other items that are labeled to their country of origin.
The big stink about labeling based on origination is that the benefits of segregating 5% of our U.S. beef consumption as a novelty item that favors imported beef will not be offset by the costs of segregation and labeling of all beef.
It is extremely arrogant to assume that you know more about marketing beef than those who actually market beef.
Luke: " SH, you are concerned that the capitalist system is being forced to change, making it more difficult on either the producer or the retailer. I am concerned about the producer and eventual wellfare of the US cattle producers."
Nice try Luke but I have laid out a lot more reasons to oppose "M"COOL than that and you have failed to contradict a single argument I have presented with facts to the contrary.
1. Most consumers are not asking for Country of Origin Labeling
2. Those consumers that do want to know where their beef comes from can buy source verified branded beef.
3. When you segregate ONLY 5% of the beef as imported, you have created a novelty item that favors the rare product.
4. Sales of New Zealand lamb is a perfect example of how U.S. consumers are not loyal to U.S. products.
5. "M"COOL prohibited the means to enforce it by prohibiting "M"ID.
6. There is nothing in "M"COOL that cannot be provided better by the free enterprise system.
7. There will be costs associated with segregating foreign carcasses and foreign beef products that will be passed on to producers in the form of lower cattle prices.
8. Packers and retailers off all sizes opposed "M" COOL at "M"COOL listening sessions.
9. Those who sell beef generally know more about selling beef than those who just sell cattle.
10. Consumers base their shopping priorities on price and value, not country of origin.
Rather than supporting your position with facts or contradicting my position with facts to the contrary, you have simply made speculative statements to support your position.
~SH~