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re: Meat prices spiking. Here is supposedly why.

Posted on 5/27/20 at 8:46 am to
Posted by kingbob
Sorrento, LA
Member since Nov 2010
67214 posts
Posted on 5/27/20 at 8:46 am to
Demand is actually down, supply of cows is up. Beef prices should be falling, but due to FDA regulations, there are just 4 companies that control virtually all butchering of cattle in America, 2 of which are owned by China. The packers have claimed they can’t find workers and have shut down production, but won’t allow any investigation into the truth of the matter. Basically, ranchers can’t get their cows to slaughter, so stores can’t get their meat. The FDA’s heavy regulations which require an FDA meat inspector on site, essentially eliminated local butchers, and created the environment for this massive bottleneck.
Posted by notiger1997
Metairie
Member since May 2009
58275 posts
Posted on 5/27/20 at 8:46 am to
We’ve been discussing the meat issue for six weeks now.
Thanks for he new info. LOL
Posted by The Third Leg
Idiot Out Wandering Around
Member since May 2014
10056 posts
Posted on 5/27/20 at 8:47 am to
Lulz. Hey, Clevon, when Iowa shut down the big arse pork processing facilities, production decreased by 40,000-50,000 hogs per day. The largest plants account for 4-5% of US output by themselves. That’s an industry set up for just in time delivery. Right now, you can get a whole hog for free, but you’ll have to butcher it yourself, because no lockers have space for 6-9 months.

I would have to imagine beef output was similarly fricked.
Posted by OysterPoBoy
City of St. George
Member since Jul 2013
35528 posts
Posted on 5/27/20 at 8:50 am to
The FDA doesn’t regulate meat.
Posted by The Third Leg
Idiot Out Wandering Around
Member since May 2014
10056 posts
Posted on 5/27/20 at 8:50 am to
quote:

Demand is actually down, supply of cows is up.

I’m not saying this is untrue, but I think it probably is. The supply of cattle is likely “up” because the processing facilities shut down and you had thousands upon thousands of heads of cattle scheduled for slaughter that had nowhere to go, and now there is a glut.
Posted by member12
Bob's Country Bunker
Member since May 2008
32122 posts
Posted on 5/27/20 at 8:52 am to
Our personal shopper has reported no shortage, and we've never had a problem getting it here.
Posted by member12
Bob's Country Bunker
Member since May 2008
32122 posts
Posted on 5/27/20 at 8:52 am to
quote:

2 of which are owned by China.


I suspect that this won't be for long.
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 5/27/20 at 8:55 am to
Lol joke is on all of you who haven’t gone vegan yet. Don’t get left behind losers
Posted by fallguy_1978
Best States #50
Member since Feb 2018
48811 posts
Posted on 5/27/20 at 8:56 am to
quote:

Lol joke is on all of you who haven’t gone vegan yet. Don’t get left behind losers

I'm a meatatarian
Posted by AgGator
Member since Nov 2009
132 posts
Posted on 5/27/20 at 9:01 am to
Having a bottleneck with only 4 major packers is a bad deal but it's not because of government regulations only. It's a good thing to have those people at plants and the reason many plants have gone out of business and been consolidated is because oh how difficult the packing business is in a global economy. If you saw some small lockers you would be happy there was an inspector there watching over things.

The ability to find outlets for the stuff that isn't consumed in the US isn't something the little guy is set up to do. Nor is the little guy able to offer grid and formula pricing that incentivizes making better cattle and so you end up with all commodity cattle and therefore a lesser quality. I wish there was more competition in the packing industry but there's a reason we have the situation we do today. It takes a massive amount of capital and people to run efficiently and takes alot of equity to survive when they are losing money on everything they kill.

All that said the packers are jerks, but necessary jerks that are mostly good at what they do.
This post was edited on 5/27/20 at 9:02 am
Posted by Slingin Pickle
Fancy side of the North Shore
Member since Jun 2008
3013 posts
Posted on 5/27/20 at 9:05 am to
If there is a worker shortage, i would bet it has more to do with the unemployment benefits vs people getting sick.
Posted by The Third Leg
Idiot Out Wandering Around
Member since May 2014
10056 posts
Posted on 5/27/20 at 9:11 am to
quote:

I wish there was more competition in the packing industry but there's a reason we have the situation we do today. It takes a massive amount of capital and people to run efficiently and takes alot of equity to survive when they are losing money on everything they kill.

The companies largely in control of the US meat processing industry are the ones responsible for its current structure. For years, these were high paying jobs in largely urban areas with big labor pools. Since 1980, that has dramatically shifted to more rural facilities, with cheaper labor, often piped in illegally. This drove the prices of meat down, and small processors who were doing it the right way out of business.

The consolidation of the industry has forced a ton of farmers into hostage situations, with 1-2 buyers for their output.
This post was edited on 5/27/20 at 9:14 am
Posted by northshorebamaman
Cochise County AZ
Member since Jul 2009
35528 posts
Posted on 5/27/20 at 9:16 am to
quote:


I'm a meatatarian
Posted by IAmNERD
Member since May 2017
19316 posts
Posted on 5/27/20 at 9:19 am to
quote:

Absolute total bullshite. What the citizens of the United States need to understand is that most American businesses are designed to frick you over whenever possible. Once you accept this fact you can relax.

Posted by Bigbee Hills
Member since Feb 2019
1531 posts
Posted on 5/27/20 at 9:23 am to
quote:

Local farmers and slaughter houses need to do a better job at selling themselves.
Agreed.

I get all my meat from a local butchery. They raise all their cows, pigs, chickens and turkeys in the fields, lots and houses on the acreage directly behind the butchery. It's far superior in both quality and price than that of supermarket meat. They have freezers full of standard cuts, pre-made jerky and snack sticks, sausage, burger patties, etc., and they take and fill custom cuts twice a week.

I buy 20 pound whole ribeyes for a hundred and some change and they are far better quality than the "stamped" high quality whole ribeyes that are damn near double, if not more than double, that price at supermarkets. Nowadays there's no telling what the damned thing would cost at Kroger IF you could find it.

I don't know, as I haven't looked in awhile because I don't buy meat there, but what I DO know is that more people than not have no idea that they've a butcher down the road with organic, free range beef for far less than this shite that the big stores sell. I don't necessarily mind that, though.

It's easy for me, an armchair butchery owner and operator, to say what I would and wouldn't be doing, but what I'm not is an armchair small business owner. That said, I'd kill to be in this position if I were a local butcher. You'd see my business plastered all over so much shite that it'd be like those lawyer billboards in The Lou along the interstates: you'd be so sick of seeing my arse that the real trick for me would be to not make you revolt and say, "FRICK that guy."

But you'd know damned well I was in business- especially right now- and that you can get meat from us for very competitive prices, Covid or not.
This post was edited on 5/27/20 at 9:24 am
Posted by islandtiger
Baton Rouge
Member since Sep 2012
1787 posts
Posted on 5/27/20 at 9:28 am to
quote:

People are starting to buy from local farmers


The best of all options. We buy all our beef, pork and lamb from local producers...custom cut/wrapped. We know the producers, know their husbandry practices and support local businesses. I want to eat animals that were humanely raised on well-managed pasture and only had one bad day in their life.
Posted by AgGator
Member since Nov 2009
132 posts
Posted on 5/27/20 at 9:30 am to
The packing industry shifted towards where the cattle are actually being fed. It isn't efficient or wise to move fat cattle on trucks or trains across the country to be killed. Packers simply followed the feeding industry which is centered around the ogallala aquifer.

They use immigrant labor because most Americans won't readily do those jobs. I have spent many hours in plants on both the kill and fabrication side and have always had it as one of the last things I would ever want to do. It's hot and humid on the kill side and cold on the fab side. The guys that have been there for a while and are skilled get paid quite well. The person cutting the ear tags out as they go by on the rail, not so much.
This post was edited on 5/27/20 at 9:32 am
Posted by The Third Leg
Idiot Out Wandering Around
Member since May 2014
10056 posts
Posted on 5/27/20 at 9:38 am to
They went there because the lack of population density fostered a lack of oversight and union presence. Sure they sold the “close to the source” bullshite, but it was a play against labor. Those localities couldn’t staff those facilities long term. They knew it, that’s why when this shift started, you saw the percentage of Latinos triple in a few decades after production was taken rural, most of it illegal.

For decades, meat processing was always one of the highest paid industrialized jobs. Now, it is one of the lowest. It has always been the most dangerous.

In short, this model is only sustainable with illegal labor, and if the government actually punished these corporate behemoths for their ills, they’d have abandoned it long ago.
Posted by GetCocky11
Calgary, AB
Member since Oct 2012
51393 posts
Posted on 5/27/20 at 9:39 am to
quote:

Basically, ranchers can’t get their cows to slaughter, so stores can’t get their meat.


On the poultry side, NC farmers are euthanizing about 1.5 million chickens for the same reason.
Posted by danilo
Member since Nov 2008
20272 posts
Posted on 5/27/20 at 9:39 am to
meat is bad for Climate Change. You should be a vegetarian anyway.
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