Charlie Gracey is one of Canada’s more renowned experts on the beef industry in Canada. Charlie very much understands the relationship of the rancher, feeder and packer. At the Tiffin Conference in Lethbridge, Charlie discussed at length the things that the Canadian industry must do to increase markets and increase supply concurrently. Charlie believes that expanding the cow herd must only happen as the export markets expand.
Based on his analysis Charlie says that the cow herd as begun to expand. Charlie believes Canada needs export strategies that match our capabilities. We need to focus on pull versus push marketing. Canada cannot afford to just expand the supply of cattle recklessly. There is no reason to just expand the herd without consumer demand to pull the beef to market. Pushing the increase in supply through the system will not create more value and profit for producers.
Charlie believes that almost all future growth for the Canadian cattle industry lies in the growth of export markets. Domestic consumption of beef is not growing. We must really focus on a limited amount of markets instead of too many. We can’t spread ourselves thin. Market access should be “rules based”. This will make our industry more profitable for producers.
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