American Hardwood said:Sq 17 said:
Also the corporate interests are having to close packing plants because even at $7 for ground beef the packers are saying they are losing money
The issues in cattle is not about price fixing issue ( IMO ) it is about a business model that was destined to fail eventually. There is not enough money in the cow-calf business to make it worth the land owners interest to be In the cow calf business ( It is at best a very time consuming hobby with a terrible annual ROI)
People getting old and getting out of the business has sent herd numbers down and calf prices through the roof.
I think eventually people just start eating less beef and a new normal emerges but for now more people wanting beef than current herd size can deliver
Being in the cow-calf ranching business, we are making pretty good money right now. But there is an economy of scale to it. Smaller herds are where you might find that the juice isn't worth the squeeze. I find it a little hard to believe that the packers are losing money. In normal times, it seemed everyone upstream of the producers were where the money was being made. Can't see how they are losing money unless consumption numbers have dropped due to the prices.
This. We're in the small category, but, yes, we are making some money also right now. It's nice to be able to be able to put a little money away for a change, instead of ploughing it all back in. But there aren't nearly as many ranchers as there are people that cry about prices, so guess who is heard.







