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What I know for a fact.
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<blockquote data-quote="Dave" data-source="post: 38981" data-attributes="member: 498"><p>There are a couple of things which I know to be fact. Where importing live cattle has hurt US producers in the past. One is the exchange rate. The slaughter cow market tends to be a little more local/regional than fat cattle. A couple of years ago the exchange rate dipped in the fall when cattle were coming out of the hills. Our slaughter cow market took about a ten cent dive. I asked a buyer for a small local plant what the reason for this was. He told me that the buyers for the larger plants were buying truck loads of butcher cows out of Canada. With the lower exchange rate those cattle were cheaper than buying ours, so the CDN exchange rate cattle drove our prices down.</p><p>The other one is with dairy cattle. Canada has a quota system on the milk production. This keeps dairies from expanding which means that they always have excess heifers and cows. Those heifers always had a ready market in the US because there is no quota on milk production here. That in turn increased milk production which kept prices down. Those cows are also get culled after time and end up at the slaughter plant where they increase our meat supply.</p><p>A system with ear tags in certainly not the answer. They get lost. They get replaced. A country of orgin hot brand is the only method that I see working.</p><p>Dave</p></blockquote><p></p>
[QUOTE="Dave, post: 38981, member: 498"] There are a couple of things which I know to be fact. Where importing live cattle has hurt US producers in the past. One is the exchange rate. The slaughter cow market tends to be a little more local/regional than fat cattle. A couple of years ago the exchange rate dipped in the fall when cattle were coming out of the hills. Our slaughter cow market took about a ten cent dive. I asked a buyer for a small local plant what the reason for this was. He told me that the buyers for the larger plants were buying truck loads of butcher cows out of Canada. With the lower exchange rate those cattle were cheaper than buying ours, so the CDN exchange rate cattle drove our prices down. The other one is with dairy cattle. Canada has a quota system on the milk production. This keeps dairies from expanding which means that they always have excess heifers and cows. Those heifers always had a ready market in the US because there is no quota on milk production here. That in turn increased milk production which kept prices down. Those cows are also get culled after time and end up at the slaughter plant where they increase our meat supply. A system with ear tags in certainly not the answer. They get lost. They get replaced. A country of orgin hot brand is the only method that I see working. Dave [/QUOTE]
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