RED DEER – Alberta beef producers have decided to take a hard look at how their meat industry is working.
The Beef Industry Council, which represents Alberta’s five main beef producer groups and allied support organizations, has hired Informa Economics Inc. to review government regulations, climate, business impediments, geography, feed sources and other factors affecting their business.
Rick Anderson of Informa told the council’s conference in Red Deer on Feb. 18 that a steering committee of beef industry members will examine the completed results later this year.
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“We may say some things some people don’t want to hear,” he said.
Informa’s study will focus on the feeding sector and compare it to other major beef producing areas in the United States.
Preliminary observations from the study show the North American cattle and beef industry is largely homogenous. The study will ask if Alberta would need to worry about competitiveness if the U.S. and Canada weren’t separate countries.
It will also ask if differences between the two countries occurred because of different regulatory standards, grain policies and tax structures.
As well, the study will examine what the industry might look like if it could be rebuilt from scratch.
While Informa will compare cost of production, Anderson warned that does not tell the entire story.
“You’ll find there is as much variance in cost of production from one operation to another as you would ever find between like operations in one country or the other,” he said.
“We are looking at this whole process as a supply chain. Sustainability of the Alberta beef industry will only be as strong as the weakest link.”
The study will also offer feasible steps for the Alberta industry to create long-term profitable and sustainable growth, which could mean regulatory change or harmonization.
Another consideration is the need for Alberta to export because of its small population.
“Are we in the right markets and are we doing the right things with the products?” he said.
