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Cattle Boards
NCBA, R-CALF, COOL, USDA (No Politics!)
Question for Canadian Cattlemen and Cattlewomen
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<blockquote data-quote="Cattle Rack Rancher" data-source="post: 101308" data-attributes="member: 245"><p>The one thing you are missing in this equation is processing capacity. The reason why cattle prices are so low is because there is nowhere to process them. For example, I called into the local abattoir on January the 21st to book a couple of beef at their next available date. I got them booked in for the 29th of November. We have always had some export of beef to the US but when the original Canada-US Free Trade Agreement was signed back in the early 80's , there was a huge influx of American buyers showing up at Canadian auction houses and buying feeders and finished cattle. Because of the advantage of the American dollar, we soon found ourselves shipping live animals instead of beef to the US. This caused the majority of our packing plants to shut down as they just couldn't compete with those Yankee greenbacks. 20 years later, all the packing capacity moved to the US except for what we used domestically and what little we exported to other countries. We also increased the supply of cattle to meet US demand for live cattle over the years. Suddenly, two years ago, the border closed and the pipeline stopped dead. With only limited capacity for producing beef, packers are concentrating on producing the highest price cuts they can so now hamburger cows and bulls are virtually worthless. Hope that explains a few things. Good Luck.</p></blockquote><p></p>
[QUOTE="Cattle Rack Rancher, post: 101308, member: 245"] The one thing you are missing in this equation is processing capacity. The reason why cattle prices are so low is because there is nowhere to process them. For example, I called into the local abattoir on January the 21st to book a couple of beef at their next available date. I got them booked in for the 29th of November. We have always had some export of beef to the US but when the original Canada-US Free Trade Agreement was signed back in the early 80's , there was a huge influx of American buyers showing up at Canadian auction houses and buying feeders and finished cattle. Because of the advantage of the American dollar, we soon found ourselves shipping live animals instead of beef to the US. This caused the majority of our packing plants to shut down as they just couldn't compete with those Yankee greenbacks. 20 years later, all the packing capacity moved to the US except for what we used domestically and what little we exported to other countries. We also increased the supply of cattle to meet US demand for live cattle over the years. Suddenly, two years ago, the border closed and the pipeline stopped dead. With only limited capacity for producing beef, packers are concentrating on producing the highest price cuts they can so now hamburger cows and bulls are virtually worthless. Hope that explains a few things. Good Luck. [/QUOTE]
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NCBA, R-CALF, COOL, USDA (No Politics!)
Question for Canadian Cattlemen and Cattlewomen
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