Two national farm groups are taking different approaches to dealing with the crisis in the livestock sector.
The National Farmers Union is getting graphic in its efforts to convince the public and politicians that the industry is in dire straits.
The Canadian Cattlemen’s Association is taking a lower-profile approach, sponsoring a new study to look at the issue of market power in the red meat packing sector.
The NFU has recently been involved in two public events in which animals were slaughtered to bring public attention to the plight of beef and pork producers.
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After processing, the beef from Aitken’s cull cow was donated to local food banks.
NFU president Terry Boehm said the two events were coincidental and reflected growing frustration and financial distress among livestock producers.
He said any event that can bring the dire situation facing livestock producers to the attention of the public and politicians is worthwhile.
“I know the event in New Brunswick had significant impact,” he said.
“It’s a graphic way to call attention to a problem. It got a lot of media attention and resulted in an extended interview with the province’s minister of agriculture on CBC.”
Similarly, the event in Alberta also succeeded in bringing those issues to the public’s attention.
Boehm noted that neither event generated any negative reaction from the public or animal rights groups.
“I think the public generally is quite sympathetic to farm and agriculture issues,” he said, adding he wouldn’t be surprised to see more events designed to publicize the issues facing livestock producers.
Aitken said in his news release that cattle prices have gone down and cull cows are at record low levels, but the price of hamburger and other beef products continues to increase.
“Clearly, something is wrong,” he said.
The NFU believes corporate concentration and lack of competition in the processing and retailing sectors are at the root of the problem.
Meanwhile, the CCA recently announced a research project to examine changes in market power in the beef industry since 2005.
The organization says it will examine issues such as mandatory country-of-origin labelling in the U.S., downsizing and consolidation in the packing sector and the effect of all those changes on fed and feeder cattle prices.
The study, to be conducted by Canfax Research Services supported by the Alberta Livestock and Meat Agency, will update and expand upon a similar market power study conducted in 2006.
That study found that when the number of potential buyers of fed cattle in Alberta decreased, the market power of the remaining buyers increased.
However, it did not find evidence of any co-ordinated exercise of market power by red meat packers.
The new study will aim to evaluate alternative mechanisms for market surveillance, identify options for managing the impact of market power and make recommendations for potential policy decisions.
The project is to be completed by January 2012.
