Since the profit equation is the primary driver of resource allocation and investment, one need look no further than the main components of the profit equation to begin understanding competitiveness in any industry. It is well understood that profitsare nothing more than revenues minus fixed and variable costs so competitiveness is effectively wrapped up in the myriad of factors that determine and drive revenues and simultaneously, determine and drive production costs. For some in the industry, a singular focus on live animal cost of production (COP) seems to be the extent of their consideration of competitiveness. Such a view could be a business trap! What I want to demonstrate is that live animal COP, while highly significant, is but one of manyfactors that will ultimately determine a specific industries ability to survive and prosper in the global market place. The focus for my remarks will be on North America in general and how Canada fits in with the United States in a global manner.
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