Beef pricing vs cost to produce beef

5,986 Views | 47 Replies | Last: 3 yr ago by Tom Doniphon
itsyourboypookie
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Saw this video today, and I'm guessing it's caused by drought/ cost of feed/ fuel prices ect, but it seems like the order buyers in Emory today would of got a hell of a deal. They have another sale on Tuesday if they didn't get everything sold today.

It would seem because the price of cattle is so low, beef prices would come down. Do feed lots and packers just gouge the consumer and ranchers during times like this?

After droughts is there a cattle shortage for a bit because ranchers can't run as many cows on there land?

And what relief does the USDA provide? Is it substantial? Or will we be seeing new names on mail boxes soon?

https://www.facebook.com/100001152943161/posts/5270672392981140/?d=n&mibextid=7ovdaX
Slicer97
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Go vegan and don't worry about it.
jagvocate
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Imagine being a real estate investor … you can buy houses wherever you want for whatever you can but only have two options for selling:

1. You can only sell to facilities that are controlled by a couple of big Ag companies in collusion with each other; or
2. Take on more risk, holding costs, and marketing expenses to sell to cash-paying end-user consumers, no financing allowed

Congrats on understanding modern cattle raising

Gator92
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Hard to believe this would be the case in Emory, but I've seen similar posts on FB. They are saying cattle barn sales are all going to slaughter. NE TX had good spring rains and I would think hay is widely available. One post I saw said TX on track to have 1 million less head. Drought and diesel prices to blame.

Maybe CanyonAg can weigh in...
black_ice
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Ranchers been getting fooked at the sale barn for a long time.

All this inflation and no bump in sales price at the barn.
chris1515
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I saw that also on FB. I wonder what the line is normally like.

Looking at the website for the sale barn, 6/28/2022 they sold 1,326 head.
But, a year ago in 2021…they sold 1,928 head on 6/26.

Two things, this is a pretty big sale.
A line like that might not be too unusual.
AnScAggie
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It's tough right now and if we don't get several substantial rains soon it will only get worse. More herd liquidation will happen at least in central and south Texas. And for those that try to hang on hay will be in short supply and ridiculously expensive this winter because most dry land growers will either not make a hay crop or it'll be a smaller one than normal.
oldcrow91
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Buy retail, sell wholesale. What could go wrong.

Small time folks need a really good job or oil wells to support those cows.

Clob94
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Group of friends and I called a rancher we know down near Cuero that does Brangus. He said he's getting roughly the same price at the sale barn he was last year. We are all planning on offering him 50 cents more per pound and hiring one of those mobile butchers to cut them up for us. We'll all have beef for a year. Rancher makes more $ and we get cheaper beef.
Artorias
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AnScAggie said:

It's tough right now and if we don't get several substantial rains soon it will only get worse. More herd liquidation will happen at least in central and south Texas. And for those that try to hang on hay will be in short supply and ridiculously expensive this winter because most dry land growers will either not make a hay crop or it'll be a smaller one than normal.


We went through this last year here in Tennessee. Little rain made hay scarce and expensive. A lot of people didn't even do a second cut. I was able to get most of my needed hay after first cut, but was scrambling in the fall to find a few extra rolls.

We are getting pretty good rain up here this year. Hope TX finds some rain soon.
Cen-Tex
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Kinda tough looking at the beef prices in the supermarket knowing I'm only getting $1.50/lb at the auction barn.
CanyonAg77
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Gator92 said:

Maybe CanyonAg can weigh in...
I appreciate your confidence, but I'm a farmer, not a cattle guy. I'll leave it to them.
Ag83
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Wonder where this goes?...

https://www.businessinsider.com/lawsuit-accuses-4-meat-processors-of-conspiring-inflate-beef-prices-2022-7?op=1
thann07
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I have a half ready for a new home leaving from the processor next week.

PM if interested!
IslanderAg04
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jagvocate said:

Imagine being a real estate investor … you can buy houses wherever you want for whatever you can but only have two options for selling:

1. You can only sell to facilities that are controlled by a couple of big Ag companies in collusion with each other; or
2. Take on more risk, holding costs, and marketing expenses to sell to cash-paying end-user consumers, no financing allowed

Congrats on understanding modern cattle raising




My Papa was a cattle rancher out of Orange Grove and worked directly with the Wrights and Clayton Williams for cattle trading. Nafta crushed him as he was an old Navy welder that won a Silver Star when working as a repair/recovery team at Omaha Beach, and was relaying on his investment in ranching for his retirement. This is exactly what he told me, and it basically killed him as he had to continue welding in his 70's, to keep even. This was a key factor for me becoming a Republican at a young age. Clinton's corrupt, globalist agenda, drove my papa into the grave.
LMCane
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I'm sure Joe Biden completely understands the intricacies of this discussion-

nothing to worry about!
dcowboy808
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chris1515 said:

I saw that also on FB. I wonder what the line is normally like.

Looking at the website for the sale barn, 6/28/2022 they sold 1,326 head.
But, a year ago in 2021…they sold 1,928 head on 6/26.

Two things, this is a pretty big sale.
A line like that might not be too unusual.


They reported 3500 head today, the auction is expected to last til about 2 am Sunday morning. That's a ridiculous number for just about any barn in Texas
Tom Doniphon
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We sell cattle there regularly and consider those owners good friends - they used to run over 10,000 head a week between 3 barns..... it is dry in this part of the world with no end in sight. No hay. No grass. No choice but to sale.
Tom Doniphon
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Our hay crop for our first and only cutting is off over 50% from average... we either buy hay or sell cattle to fit the crop. It's a tough gig.
Aggie4Life02
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F the FDA
12thAngryMan
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What's the FDA have to do with it?
Aggie4Life02
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12thAngryMan said:

What's the FDA have to do with it?


I don't know, I just don't like 'em.
Showertime at the Bidens
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Aggie4Life02 said:

F the FDA


More like the USDA. Purposefully creating bottlenecks and barrier to entry for small processing plants.
flashplayer
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itsyourboypookie said:

Saw this video today, and I'm guessing it's caused by drought/ cost of feed/ fuel prices ect, but it seems like the order buyers in Emory today would of got a hell of a deal. They have another sale on Tuesday if they didn't get everything sold today.

It would seem because the price of cattle is so low, beef prices would come down. Do feed lots and packers just gouge the consumer and ranchers during times like this?

Its not the feed lot making out like a bandit. It's the processor (Tyson, Cargill, Smithfield, etc.)

For ranchers, we're all getting about the same we have at auction for the last 4+ years now, maybe longer.


After droughts is there a cattle shortage for a bit because ranchers can't run as many cows on there land?

This drought and the crappy auction prices for the last several years will both lead to American cattle herd contraction that we will feel by mid to late next year. Even before this drought the American herd was decreasing in size.

Beef should be a lot more expensive by next fall.


And what relief does the USDA provide? Is it substantial? Or will we be seeing new names on mail boxes soon?

USDA doesn't provide much to mom and pop ranchers for all the regulatory barriers they put in our way for direct to consumer marketing. I have a herd of about 80 adults (130 head total at any given time) and this year I received about a $2,000 check for disaster relief from USDA. That chunk of change really wont put a huge dent in the feed bill you'd have to pay to weather this drought with hay and molasses. That might have given me about 3 weeks worth of relief if even.

Some of us have rainfall insurance for hay and grazing, but it also wont get you through a drought like this without having to sell.


https://www.facebook.com/100001152943161/posts/5270672392981140/?d=n&mibextid=7ovdaX
flashplayer
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Zarathustra said:

Aggie4Life02 said:

F the FDA


More like the USDA. Purposefully creating bottlenecks and barrier to entry for small processing plants.


This. It's the USDA but also state agencies as well that support the bottleneck to the big 4 or so packers.
sharpdressedman
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Numerous buds in my outfit came from farming or ranching families, and as we became brothers over four years I was filled with respect and admiration for them and their folks, Since my exposure to them many years ago, I have firmly believed that they and countless others in those occupations are vastly underappreciated, seriously overworked, and poorly compensated for their 24/7/365 work effort.

Farmers and ranchers are a large part of the backbone of our nation, and I pray daily for their health and well-being.
titan
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sharpdressedman said:

Numerous buds in my outfit came from farming or ranching families, and as we became brothers over four years I was filled with respect and admiration for them and their folks, Since my exposure to them many years ago, I have firmly believed that they and countless others in those occupations are vastly underappreciated, seriously overworked, and poorly compensated for their 24/7/365 work effort.

Farmers and ranchers are a large part of the backbone of our nation, and I pray daily for their health and well-being.
Hell yes. Certainly, more needed than bureaucrats and news peddlers.
oldord
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Brought in Wagyu bulls, retaining ownership, finding my own buyers, making about a 30% premium over sale barn.

Low on grass and water but on the gulf coast, a dry year cuts down on parasites and other critters that can wear a cow down along with the mud. That being said having a better year than normal but need rain within the next 6 weeks or I will be right there with the rest
Showertime at the Bidens
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sharpdressedman said:

Numerous buds in my outfit came from farming or ranching families, and as we became brothers over four years I was filled with respect and admiration for them and their folks, Since my exposure to them many years ago, I have firmly believed that they and countless others in those occupations are vastly underappreciated, seriously overworked, and poorly compensated for their 24/7/365 work effort.

Farmers and ranchers are a large part of the backbone of our nation, and I pray daily for their health and well-being.


Farming isn't for everyone, but there are so many people that would love to make a living farming but they can't because of government regulation. I've bought meat from several local homesteading families. It's wonderful to see their kids growing up on a working farm. These kids will make good citizens. I am in favor of anything that leads to more small family farms.
Clob94
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IslanderAg04 said:

jagvocate said:

Imagine being a real estate investor … you can buy houses wherever you want for whatever you can but only have two options for selling:

1. You can only sell to facilities that are controlled by a couple of big Ag companies in collusion with each other; or
2. Take on more risk, holding costs, and marketing expenses to sell to cash-paying end-user consumers, no financing allowed

Congrats on understanding modern cattle raising




My Papa was a cattle rancher out of Orange Grove and worked directly with the Wrights and Clayton Williams for cattle trading. Nafta crushed him as he was an old Navy welder that won a Silver Star when working as a repair/recovery team at Omaha Beach, and was relaying on his investment in ranching for his retirement. This is exactly what he told me, and it basically killed him as he had to continue welding in his 70's, to keep even. This was a key factor for me becoming a Republican at a young age. Clinton's corrupt, globalist agenda, drove my papa into the grave.
We probably were dancing at the Rifle Club at the same time, at some point. I still don't like driving down FM 666.
Blindside05
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Gator92 said:

Hard to believe this would be the case in Emory, but I've seen similar posts on FB. They are saying cattle barn sales are all going to slaughter. NE TX had good spring rains and I would think hay is widely available. One post I saw said TX on track to have 1 million less head. Drought and diesel prices to blame.

Maybe CanyonAg can weigh in...


Idk what you consider NE TX but we are in Lindale and we bailed our last hay last week. Got 1 cut everywhere that made roughly half what is normal. We still have fertilized grass but turned cattle on it bc what's the point of bailing it up if we have to turn around a month later and feed it. We have enough grass and hay stocked to make it thru the spring but no surplus to sell. Need rain desperately
Gator92
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Sounds like you are in a better position than most and I hope you get rain soon.

I stand by my post. Smith and Wood counties did have normal spring rainfall. However, there hasn't been significant rainfall since the beginning of June.

Just like most of the state.

Maybe lack of water is forcing sales? Tanks are dry? By tank, I mean pond. If you are in Lindale, you know what I mean.

I'm from Tyler and have family near New Chapel Hill. I'm stuck in Katy and hope to return to God's country someday. We could use the rain as well. Hate to say it, but I'm praying for a Hurricane. Am certain my cousins who run a few head on 200 acres in New Chapel Hill are too.

God speed rain on The Great State.
medwriter
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Clob94 said:

Group of friends and I called a rancher we know down near Cuero that does Brangus. He said he's getting roughly the same price at the sale barn he was last year. We are all planning on offering him 50 cents more per pound and hiring one of those mobile butchers to cut them up for us. We'll all have beef for a year. Rancher makes more $ and we get cheaper beef.
That's the definition of a win win situation.
black_ice
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It's gonna take a hurricane at this point.
BCag07
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In 2011 we (Texas) experienced a similar drought but with one glaring difference…inflation wasn't an issue then. My family decided to fight through the drought of '11. We fed our cattle all Summer, Fall, and Winter. Hay got to be expensive but cubes and fuel were reasonable so that made us stay in.

Fast forward to this year and we made the painful decision of selling out. My family has been in the cattle business since 1876 so this is extremely difficult to do, but the overhead is killing us. Fuel and grain are beyond reasonable and there was no hay cut within a 75 mile radius from us. Due to only receiving roughly less than three inches of rain on the year thus far, everything is dirt and water is becoming a major issue.

Pray for the ranchers moving forward, industry does not look good moving forward. Who wants to keep doing this in the future where there are easier jobs out there?
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