Some prairie livestock producers say they are losing faith in one of the country’s leading organic livestock marketing organizations.
They claim the Canadian Organic Livestock Association, or COLA, has oversold the industry and has fallen behind on payment delivery.
COLA counters that those complaints are coming from naysayers who need more patience and understanding about the tough post-BSE marketing environment.
Most of the criticism of the non-profit marketing organization stems from a shipment of cattle sent to a distributor in Montreal last year.
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COLA brokered the deal involving two semi-loads of organic cattle sold to a firm called Boucherie Fresh Cutz. A handful of producers participated in the transaction, in which the Quebec butcher purchased 136 cattle for approximately $250,000.
One shipment was sent in August 2003, another a few months later in October. None of the producers has received payment for the transaction.
Don Bogen, who runs a mixed organic operation in Consort, Alta., is owed the most money. He shipped 15 finished head in August and another 15 in October and is still awaiting his $47,000 payment.
“We still have a chance to get the money. I haven’t given up hope on it,” said Bogen.
If the money arrives soon, he will consider the deal a success because COLA was able to secure an excellent price for his cattle of $2.31 per pound on the rail. He would even consider using the marketing service again, although he would demand payment up front.
If the payment delay drags on much longer he said he will consult with the other producers about taking legal action against COLA and the Montreal distributor.
COLA president Sam Rhode said that won’t be necessary.
Boucherie Fresh Cutz was having difficulty getting financing in place with its bank in the post-BSE environment of low cattle prices, but that situation has been resolved.
“I had very good news this morning. It’s all done. It’s just a matter of transferring the money now.”
Rhode is frustrated some COLA members forget organic markets are being developed at a small direct cost to them, a $100 annual membership fee and an administrative sales fee of $0.02 per lb., live weight basis.
He said it takes time to put organic deals together, especially now that banks are cracking down on livestock financing.
Rhode expected payment from Boucherie to arrive on Sept. 1. Affected producers should receive their cheques by the second week of September.
Keith Neu heard a similar assurance at COLA’s annual meeting in April. That was four months ago. The Hudson Bay, Sask., farmer has since written off the $1,200 he is owed.
Neu was the founding president of COLA. He had a falling out with the current board of directors but is still a member of the organization.
He was also part of a group of farmers that sent cattle through COLA to what they were led to believe was a feedlot in Smoky Lake, Alta.
Neu was supposed to be paid for his animals within 30 days of delivery. After 90 days had elapsed with no payment, he phoned the feedlot and discovered it had changed hands.
“The new manager said, ‘we have no market for these cattle and we have no feed for these cattle.’ “
Neu and a few other producers decided to pick up their cows in Smoky Lake. When they arrived they were shocked by what they saw.
“It was not a feedlot,” said Neu.
It was a bison ranch. There were no pens for cattle, just pasture with a few bale feeders.
Neu said the cows were in decent shape and the ranch manager was co-operative, refusing to charge them for three months of feed. However, he was surprised to find that COLA had authorized the shipment of one of his eight animals to the Montreal butcher, without his consent.
Neu transported his remaining seven animals to an auction mart in Vermilion, Alta., where they were sold as conventional cattle.
Dave Bogen, brother to Don Bogen, said that kind of disappointment is not uncommon with COLA. The Vegreville, Alta., livestock producer marketed some animals through the organization two years ago that didn’t generate the organic premiums he was expecting.
COLA told him those rates would be “topped up” if markets improved.
“That amounted to $28,000 on my part that I’ve kind of been dreaming about getting for awhile. But I’ve lost that dream.”
Bogen said he was encouraged by COLA to go full bore into the organic beef business. However, of the 50 animals he finished in 2002, he still has 33 and the prospect of selling them at a profitable price is rapidly disappearing.
“They promised a market. You know, ‘it’s coming. We’re going to use all the animals you can supply.’ And I’m sitting on these animals that are almost 30 months of age.”
Neu shared those criticisms.
“It’s all just, ‘this is going to be the best thing that ever happened,’ and, ‘save all your cattle.’ ”
COLA board member Ken Hymers said the only thing Rhode is guilty of is a healthy dose of optimism.
“It’s easy enough to be critical of mistakes that we’ve made. The only option to that would have been not to do anything and not to take a chance.”
According to Rhode, Neu has a personal vendetta against the organization he once controlled and he operates an organic beef marketing business that competes with COLA.
Rhode said he has not overpromoted COLA or the organic industry. The organization has simply hit unpredictable stumbling blocks, such as losing an important buyer in the United States called Dakota Beef.
“We shipped live to them and when the border closed when BSE came along, we couldn’t ship there any longer.”
He said members are quick to criticize delays and lost sales but happy to accept the “unbelievable” prices COLA generates for them.
“A few people aren’t going to knock us down no matter what happens because this is the greatest thing for agriculture there has ever been,” said Rhode.
