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Started By
Message
re: Meat prices spiking. Here is supposedly why.
Posted on 5/27/20 at 9:56 am to The Third Leg
Posted on 5/27/20 at 9:56 am to The Third Leg
I don't know if you realize the negative effect that transportation over long distances has on an animal. With calves we can make that up with time. With fat cattle headed for slaughter we cant. Thats all money lost largely for the producer, not the packer.
I don't disagree about what plants have done to demographics in those areas but location is a big animal welfare issue.
I don't disagree about what plants have done to demographics in those areas but location is a big animal welfare issue.
Posted on 5/27/20 at 10:12 am to AgGator
Solutions to problems shouldn’t be unethical. The problem is the packers refusal to pay adequate wages. They wouldn’t have to pipe in labor from Guatemala if they didn’t make a once highly coveted job worthless by way of fraud.
Posted on 5/27/20 at 10:35 am to The Third Leg
I would argue the skilled positions do make decent money (all relative I suppose but high teens/low twenties hourly pay is good for many of those communities), its the fact that most positions in those modern plants are unskilled and can be done by anyone with no training. What wage does that deserve? That would get back to someone's view of wages in general which is a whole other animal.
Posted on 5/27/20 at 10:36 am to Geekboy
Went to local store and they want like $8 a pound for ground beef. frick that.
Posted on 5/27/20 at 10:55 am to AgGator
It’s the Nation’s most dangerous widely held occupation. I don’t know what that’s worth to a documented American wage slave, but it is obvious that it is more than a processing facility is willing to pay.
Posted on 5/27/20 at 11:01 am to The Third Leg
Well making ground meat at the store I shop at HAS a grinder... zero reason for it to be that high.
Posted on 5/27/20 at 11:23 am to AgGator
Really interested in what you think about this Trump talking about stopping imports
I personally think that needs to be done except for Canada and Mexico. Halt New Zealand, South America, and Australia imports. I believe as a producer we are fixing to get into unsupportable calf prices due to rise in all of our input costs. Processors will be watching box prices fall as slaughter volumes increase and will stop supporting the fed market. Feedlots will adjust prices to stocker and feeder cattle which will fall to the producer.
I personally think that needs to be done except for Canada and Mexico. Halt New Zealand, South America, and Australia imports. I believe as a producer we are fixing to get into unsupportable calf prices due to rise in all of our input costs. Processors will be watching box prices fall as slaughter volumes increase and will stop supporting the fed market. Feedlots will adjust prices to stocker and feeder cattle which will fall to the producer.
Posted on 5/27/20 at 11:52 am to angus1838
In general I'm not a fan of that. Almost all of the beef we import is lean grinding beef of which we don'y make enough of. The American appetite for beef is in the form of steaks and ground beef. We produce plenty of the high value cuts but not enough of lean meat. We could grind up more chucks and rump but those cuts (largely as roasts) have a demand in other countries where it makes more sense to export them rather than grind them for domestic sale as ground product. That's where countries like Australia and New Zealand come in (along with Mexico and Canada). They mostly produce lower quality, leaner animals that we use to make ground beef with. We also import live animals from Mexico and Canada that are then finished and killed here. You might argue that those live animals hurt the demand for our own domestic animals but imports and exports with those two countries are very important for our own industry where the impact offsets the gain.
I think we are going to be in for a pickle until we get more current on fat cattle. Right now we are horribly uncurrent and therefore placements into feedyards are down which then feeds back into the feeder and calf markets. I don't know that our current import and export structure has that big of an impact on that in the overall scheme of things.
What we need in our industry is better price discovery and competition in fat cattle. What people disagree on is how to get there. More packers would be great but it isn't as simple as some might make it out to be.
I think we are going to be in for a pickle until we get more current on fat cattle. Right now we are horribly uncurrent and therefore placements into feedyards are down which then feeds back into the feeder and calf markets. I don't know that our current import and export structure has that big of an impact on that in the overall scheme of things.
What we need in our industry is better price discovery and competition in fat cattle. What people disagree on is how to get there. More packers would be great but it isn't as simple as some might make it out to be.
Posted on 5/27/20 at 11:53 am to AgGator
And you know all this how??????
Posted on 5/27/20 at 11:56 am to Geekboy
You sound like you’re about to stroke out in every post.
Posted on 5/27/20 at 12:11 pm to dukke v
quote:
And you know all this how??????
I work in the beef industry for a living and have had the opportunity to be exposed to all its segments.
This post was edited on 5/27/20 at 12:13 pm
Posted on 5/27/20 at 12:24 pm to Sasquatch Smash
quote:
I'd imagine it's more accurately issues in the supply chain rather than actual supply of beef, pork, or chicken.
Secondary level of meat processing is set up and projected on historical demand, fresh or frozen retail, fresh or frozen portion controlled for restaurants etc.
Suddenly, the demand for restaurant processing (a pretty substantial percentage of consumption) drops to zero and the demand spikes for fast-food patties and fresh or frozen retail. Processors and distributors like Sysco, who are shrink-wrapping and flash freezing 100,000 cases steaks, chickens, veggies a month and selling them in bulk quantities can't economically adjust their production for a short term demand issue, so they stop buying, and the retail packagers are at capacity.
The situation whacked the supply and demand curves.
Posted on 5/27/20 at 1:13 pm to AgGator
I know our exports (weight wise) are just about even to our imports and the quality of our exports outshines what we import. I think by halting everything except Canada and Mexico it would go a long way towards restoring balance from the excessive supplies of fed cattle on hand. As producers time is on our side we can wait it out. I do feel bad bad for the stockers with cattle on feed. One good thing I guess is that carcass weights are going up. The heavier over finished cattle are also holding the quality grade higher than normal for this time of year.
Posted on 5/27/20 at 1:17 pm to Geekboy
quote:
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.
Time for socialism and price controls. That will fix it
/s
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