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Beef group makes up with Nilsson

2 February 2010 159 views No Comment

By Sheri Monk

All’s well that ends well – at least in the world of selling fat cattle to Canada’s largest buyer.
Last week, The Badger published a letter sent by the management of Northwest Consolidated Beef Producers warning members that XL Lakeside (owned by Nilsson Bros. Inc) had threatened not to buy fat cattle if the group continued to sell cull cows. Additionally, the letter said that XL Lakeside buyers may have intended to approach members directly, thereby cutting out the need for the non-profit marketing co-operative. A senior spokesperson for XL Lakeside claimed no knowledge of the event.
On Jan. 27, Northwest Consolidated Beef Producers issued a press release stating the issue had been resolved.
“The events being reported regarding XL Lakeside’s decision to no longer bid on fat cattle from Northwest Consolidated Beef Producers show list have been resolved,” said Terry Schetzsle, Northwest’s managing director. “XL Lakeside will continue to bid on Northwest’s members’ cattle as usual and business between these two companies has resumed as of today. We all recognize that with so few major packers it makes marketing difficult at the best of times. This situation and us getting it resolved underscores the importance of having a group like Northwest to help producers in the marketplace.”
Schetzsle declined to comment on the matter, referring any questions to the company’s marketing manager, Vern Lonsberry.
Lonsberry would not elaborate on what caused the dispute – cull cows represent very little of the co-operative’s offering, which is focused on fat cattle. Lonsberry referred any request for comment or explanation back to Schetzsle.
The 140-member co-operative was established in 2006 to aid producers marketing finished cattle with price discovery and is the largest volume seller of fat cattle in Canada on a cash basis.

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