How 4 companies control the beef industry

[J+ Cattle]

Wish there was a good way to encourage more inspected processors on a local level-even if just state, instead of USDA. Cost (and regulation) prohibitive for many custom guys to convert. For us small folks who would like to direct market, that sets a limit on sale options. Consumers would benefit from easier access of farm-direct beef also. We could get all kinds of diversity going, as the smaller processor can still do most by hand.

Processing capacity has been a big issue ever since COVID-19 began and continues to be an issue. When your cattle are finished and ready you can't wait months to get a kill date. Also, customers are impatient and don't want to wait.

 

[Caustic Burno]

The ones that survive will be the ones that make marginally more money per head and are will to invest/expand into a larger operation by buying out someone else that quits because they're not making any money or are physically not able to do it anymore. The majority of farmers and ranchers are already past what most people consider retirement age.

Pastures that were full here in 2010 are empty of cattle.
Several auctions have gone under. There are several problems here first most of these cattle are being raised on smaller plots not joining other ranching operations in my part of the state. Secondly the younger generation isn't interested. We have created a society that works in a cubicle to go home to a fenced yard about the size of a postage stamp. On Saturday they plan to drive their 80K pickup to the golf course, pull a 75K bass boat to the lake, next weekend a 20K UTV to the deer lease etc.
Even those raised here are running from cattle.
Largest ranch in the county just sold, disposal of 550 head of cattle. Investors are already here to make it a subdivision.

 

[callmefence]

It would be illegal to PO your own product at market or just not send them? I know it would be tough to do and when they need to go but what other real option do we have. I guess we could talk to Congress or tell the packers we need more money to survive. Seems to have worked so far

No. But it would be illegal to have a organized agreement (collusion) with the intention of (price fixing)

 

[Warren Allison]

https://www.ajc.com/news/consumers-...YWCHOXku9OC8NgSf5hMu3jxMqQgnsny01-mnSuEudSX3U

 

[TennesseeTuxedo]

Pastures that were full here in 2010 are empty of cattle.
Several auctions have gone under. There are several problems here first most of these cattle are being raised on smaller plots not joining other ranching operations in my part of the state. Secondly the younger generation isn't interested. We have created a society that works in a cubicle to go home to a fenced yard about the size of a postage stamp. On Saturday they plan to drive their 80K pickup to the golf course, pull a 75K bass boat to the lake, next weekend a 20K UTV to the deer lease etc.

Sounds like a pretty good life to me. I'm doing something all wrong.

 

[TexasRancher]

Great Posting ...very interesting. Learned a lot.

 

[TexasRancher]

My prediction is that the meatpackers will eventually use some of those big profits they're making to buy out some of the cow/calf ranchers as they go out of business. Then they will control the entire supply chain from start to finish just like they do for poultry and pork. Or they will get you to be a "contract producer" where you can supply cattle to them but they control everything from the breeding decisions, health protocols and feeding. The key being they are in control and you're just an employee at that point.

God...I hope that doesn't happen. That would really violate beyond what the meatpackers are already doing and controlling. No, I'd never accept a system like the chicken poultry producers controlling everything with my cattle....I'd be out. I've seen the sickness and disease those poultry places produce and the bankrupt poultry farmers trying to maintain the franchise rules and methods.
Cattle producers should keep the heritage of our forefather's cattle land and system intact.....it's why I'm in the business honor cattle and our forefathers....give back and feed people.

 

[TexasRancher]

Pastures that were full here in 2010 are empty of cattle.
Several auctions have gone under. There are several problems here first most of these cattle are being raised on smaller plots not joining other ranching operations in my part of the state. Secondly the younger generation isn't interested. We have created a society that works in a cubicle to go home to a fenced yard about the size of a postage stamp. On Saturday they plan to drive their 80K pickup to the golf course, pull a 75K bass boat to the lake, next weekend a 20K UTV to the deer lease etc.
Even those raised here are running from cattle.
Largest ranch in the county just sold, disposal of 550 head of cattle. Investors are already here to make it a subdivision.

Well said Caustic Burno...I see exactly some of the stuff you mentioned here. I'm not giving up on cattle...I hope things change, competition comes back for higher cattle prices. I'm seeing You Tube cattle-farming channels that i believe ARE held up by You Tube Viewers- supporters.

 

[Caustic Burno]

A

Sounds like a pretty good life to me. I'm doing something all wrong.

Your right except they own nothing but a note.

 

[Caustic Burno]

Well said Caustic Burno...I see exactly some of the stuff you mentioned here. I'm not giving up on cattle...I hope things change, competition comes back for higher cattle prices. I'm seeing You Tube cattle-farming channels that i believe ARE held up by You Tube Viewers- supporters.

I was never a large operation just average for the state.
Most I ever ran was 37 cows.
You walk in the feed store and everyone there is 60+ closer to 70. My hay man is 74 and bass fishing partner. Hay is becoming a problem here as he sold 7K round bales a year.
Next year he is doing his mine and a few other friends and neighbors.
2011 made a bunch here sell out or cut back. I sold off 70% along with all my hay equipment. Both my neighbors were about the same size when they died in the last five years.
There may be 15 cows between both places for tax purposes.
There two young men in there thirties that are trying to get into the game.
The problem I see here when my group ages out where do they sell their product and at what cost.
The salebarn will be gone the hay sales will be gone .
There is a lot more money in hay than cattle right now.
Kind of hard to pay off 250K minimum in equipment with no sales.
Here's the conundrum there is not enough land to support one ranch big enough to produce what the smaller operators are. Texas has roughly 5 million head of cattle a little over 4 million are on the smaller operation.

 

[HDRider]

Here's the conundrum there is not enough land to support one ranch big enough to produce what the smaller operators are.

We are being set up for fake beef.

 

[SBMF 2015]

We are being set up for fake beef.

Of course. The agriculture sector, more specifically the beef producers of this country have been historically bullheaded and hard for the government to control.
Fake meat is just another way to put the screws to us.

 

[SBMF 2015]

I was never a large operation just average for the state.
Most I ever ran was 37 cows.
You walk in the feed store and everyone there is 60+ closer to 70. My hay man is 74 and bass fishing partner. Hay is becoming a problem here as he sold 7K round bales a year.
Next year he is doing his mine and a few other friends and neighbors.
2011 made a bunch here sell out or cut back. I sold off 70% along with all my hay equipment. Both my neighbors were about the same size when they died in the last five years.
There may be 15 cows between both places for tax purposes.
There two young men in there thirties that are trying to get into the game.
The problem I see here when my group ages out where do they sell their product and at what cost.
The salebarn will be gone the hay sales will be gone .
There is a lot more money in hay than cattle right now.
Kind of hard to pay off 250K minimum in equipment with no sales.
Here's the conundrum there is not enough land to support one ranch big enough to produce what the smaller operators are. Texas has roughly 5 million head of cattle a little over 4 million are on the smaller operation.

Are there any young guys able to run enough cattle to support a family? It's the same story here with row crops. The older guys that farm a couple hundred acres retire or die or both. The young guys can't afford to compete against the big boys that farm several thousand acres. The big get bigger and the rest get forced out. It's really frustrating being one of the younger guys.

 

[Caustic Burno]

Are there any young guys able to run enough cattle to support a family? It's the same story here with row crops. The older guys that farm a couple hundred acres retire or die or both. The young guys can't afford to compete against the big boys that farm several thousand acres. The big get bigger and the rest get forced out. It's really frustrating being one of the younger guys.

No they do it on the side.
Two are pretty successful but hay is their money crop.

 

[greybeard]

We are being set up for fake beef.

Yes, and that also takes care of the consistency/quality/size thing all in one shot.

No. But it would be illegal to have a organized agreement (collusion) with the intention of (price fixing)

Is that really any different than what the packers are already doing now, using just a wink and a nod instead of an organized open agreement?

 

[SBMF 2015]

Is that really any different than what the packers are already doing now, using just a wink and a nod instead of an organized open agreement?

Oh come on now. We all know nothing is illegal if you have big enough lobbyists.

 

[shaz]

Pastures that were full here in 2010 are empty of cattle.
Several auctions have gone under. There are several problems here first most of these cattle are being raised on smaller plots not joining other ranching operations in my part of the state. Secondly the younger generation isn't interested. We have created a society that works in a cubicle to go home to a fenced yard about the size of a postage stamp. On Saturday they plan to drive their 80K pickup to the golf course, pull a 75K bass boat to the lake, next weekend a 20K UTV to the deer lease etc.
Even those raised here are running from cattle.
Largest ranch in the county just sold, disposal of 550 head of cattle. Investors are already here to make it a subdivision.

We're seeing small operations sell out here too. Another factor is that every dairy has closed and all those guys went into beef.

 

[callmefence]

Yes, and that also takes care of the consistency/quality/size thing all in one shot.


Is that really any different than what the packers are already doing now, using just a wink and a nod instead of an organized open agreement?

No. It's no different.

 

[shaz]

We are being set up for fake beef.

I you'll recall recent history, margarine just about put butter out of business. The pendulum has swung the other way now. The public perception of fat being bad is fading but red meat is still demonized.

I guess nobody remembers the 70's when we ate a lot more beef per capita and were healthier than we are now.

 

[Ky hills]

There is a movement, maybe small, but still quite a few that I know are, using real butter, have went back to whole milk and products made with whole milk. More people are back to eating a lot of eggs, and wanting local sourced meats and produce.