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"By the side" (editorial
comment)
A happening time
For an industry some would say is on its
death bed one heck of a lot is happening in our world of beef.
We ain't dead yet. And where there is a spark of life such as
we see in research initiatives, in strategic planning (no matter
how drawn out), and meetings with government representatives
ready to bleed cash if a bank but looks wistfully their way,
and a growing "buy local" movement, it's not time to
pack the paddles away.
Sean Firth (Atlantic Market Report) speaks of a return to favorable
prices for fed cattle, and says now is "a terrific time
to build or start a beef cow herd," when stock prices are
still down.
While Cattle Producer agencies lobby provincial and federal
governments for transition aid, and lobby some more, it would
seem the most logical solution to climbing out of the crisis
lurks in the wings in the form of Bill Sauer's BSE class action
suit.
If successful, and Toronto lawyer Cameron Pallett would bet
the farm it will be so, thousands of dollars in damages could
be paid out to producers coast-to-coast (with the exception
of Quebec which has its own class action in progress).
Pallett, who comes "from a long line of farmers and lawyers,"
has a $6 million dollar war chest to back a $10 billion claim
against Ottawa for, when it came to BSE, having done those things
it ought not to have done, and left undone those things that
it ought to have done. Result? The economic collapse of the Canadian
cattle industry.
Ottawa could settle out of court, tomorrow, setting in motion
a payout of thousands of dollars to all the 115,000 beef producers,
not a penny of which could be challenged because it contravenes
trade agreements. It's this threat of trade challenges that keeps
even the most sympathetic bureaucrat shoulder checking out of
fear a dollar in aid will trigger a countervail action.
Pallett calls settling the suit out of court a "brilliant
way" to deliver aid to beef and dairy farmers who've lost
out to BSE through no fault of their own.
The money would be spent locally paying down debt, purchasing
new equipment, a new truck, fertilizer," Pallett predicts,
transfusing rural economies. "They'll choke on their own
bile before they'll pay taxes on it."
A link keeping track of developments in this fascinating case
can be found at www.AtlanticFarmer.com.
"We're going to win," Pallett told Atlantic Beef.
"I believe it with every cell in my body."
Darrin Qualman, a researcher with the National Farmers Union,
included two stops in the Maritimes while on a cross-country
tour discussing his analysis of what's gone wrong in the beef
industry over the past 20 years (see stories this issue). The
Canadian Cattlemens Association has done itself and the industry
a disservice by sniping at the NFU and aspects of Qualman's study.
Much better and helpful overall would have been positive criticism
and suggestions where arguments might have been stronger. Is
it false hope that those with the brains and the time to put
them to work on complex problems facing the beef industry would
work together on our behalf?
We spoke briefly with Qualman between appearances in Charlottetown
and Moncton. One of his beefs is with captive supply the
practice whereby big packers become big feedlot owners. While
the CCA may not think much of arguments against the practice,
Qualman has backing from south of the border.
From President Obama no less, who, in a platform statement running
up to the election last November, said he was, "a strong
supporter of Senator Tom Harkin's (DIA) legislation that protects
independent producers by banning the ownership of livestock by
meat packers."
There's a good deal of speculation that Nova Scotia's long-awaited
beef strategy will include an emphasis forage-fed beef
meaning more forage, less grain. Some will take this further
in the interest of growing natural and organic beef. Take a look
at page 39, Les Halliday's "Island Letter," in which
he talks about a visit a while ago from Ted Soudant, CEO of Field
Gate Organic, which operates an abattoir in Ontario turning out
nothing but organic beef, hogs, and lamb.
PEI Cattle Producer Peter Verleun added an interesting footnote
to the discussion when we spoke with him about the Soudant meeting,
pointing out that Field Gate runs all three species through the
same plant. It's something farmers wanted Garden Province Meats
to consider but, the story goes, CFIA said no.
Next to last, we hear the three Maritime provinces finally have
permission from the Canadian Cattle Inspection Agency to go to
single-desk selling of tags. P.E.I. and New Brunswick are ready
to adopt a system whereby there's one check-off with the birth
of a calf, another at slaughter, for a total of $6. Nova Scotia,
it's said, is holding back, concerned it might be losing out
on revenue as an animal goes through various hands between farm
of origin and slaughter.
Oh to find perfection in all things.
See you at the Nappan bull sale. DvL
PS: Stay tuned through www/AtlanticFarmer.com.
Lots of things happening in the industry.
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