Archive for the ‘Alberta Beef Producers’ Category

Kevin Grier, George Morris Center—Alberta Changes Association Checkoff Rules

May 20, 2009

Last month the Alberta Government announced that they were changing the checkoff rules for pork, beef, potatoes and lamb in the province. This has been a very controversial topic because of the massing theories as to what will happen with that money if a refund is requested.

I spoke to Kevin Grier, Senior Market Analyst at the George Morris Center as to what he thought would come of the new check off rules.

“I am in favor of check off in support of ABP and Alberta Pork. If producers don’t think their association is doing a good job, then they need to participate and make changes through the structure. The issue in Alberta was probably brought to a head due to the ongoing structural and strategic differences among the cattle organizations. These differences, however, are not new and they exist across the country, so Alberta is not unique. Every province has friction between sectors of the cattle industry.

What is unique to Alberta, however, is the emergence of the new grant program, ALMA. The government, at least under the current minister, seems to want the new grant program to provide the leadership to the entire livestock industry. The minister has decided that government money, under the direction of very qualified and intelligent people from the industry, is going to lead to a more successful industry. I don’t see it.”

I would like to thank Kevin for his comments and encourage people to subscribe to any of Kevin’s publications; Canadian Cattle Buyer, Grocery Trade Review, Canadian Boxed Beef Report, Canadian Chicken Market Review or the Canadian Pork Review.

Alberta Legislation Changes Checkoff Rules

April 30, 2009

If you don’t follow the beef industry very closely then you have been missing the battle of the beef check off dollars.  Traditionally all the check off dollars have gone to the Alberta Beef Producers but there was growing dissent within the industry as to what the ABP was doing with that money for the industry’s benefit.  As of April 10, 2009 you will be able ask for a refund from the ABP which is much similar to the Barley Commission of Soft Wheat Growers.  

Much of the criticism surrounding the move is that the dollars will leave the system and be out elsewhere.   
In talking to Rick Paskal, an Iron Springs based cattle feeder, he really disagrees by saying, “This is is just not so.”  Paskal sees that most cattle-feeders that ask for a refund will place the funds with another association or will use the money for business related type expenses like purchasing feeder cattle.    
I am sure that this story will continue to shake the halls during beef meetings over the next 12 months as industry participants continue to speculate on the affects on the industry.  From my perspective I just hope that the end result is a more stable and profitable beef business in Canada.  This must be the end goal for all decisions in the beef business going forward.   If the neigh-sayers are correct that this decision will just increase the amount of fragmentation in the beef sector then we will have new problems to address in 24-72 months.