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A couple more reasons beef is so high priced
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OldMcdonald
Posted 4/23/2014 06:34 (#3831421 - in reply to #3831157)
Subject: RE: A couple more reasons beef is so high priced


Napanee, Ontario
"the average cow/calf operation has been profitable 17 out of the last 20 years. If it wasn't driven by profits, I don't think we'd see the current expansion we are seeing"


Current expansion?? So why are the cow numbers at the lowest since 1950 if we were making so much profit? Is that what people usually do, sell out and pack up shop when they are profitable 90% of the time?

And How much profit? 17 out of 20 years making $50 a hd? Yea, real lucrative. So on 100 cows a guy could make $5,000. Or maybe 10k at 100 / hd? Forgive me for not getting super excited about that. And neither did most other folks that left the industry too. Tie up huge acreage just to make less than some clown working at McDonalds. Yea, real lucrative. Can't believe more people didnt hold onto their cows, with all those profits Beeflinks!

Sure there were some years we made good money, but I remember mad cow also.

The fact of the matter remains that the cow number didnt just start declining in 2011/2012 drought. This has been a trend in the running for many years now. And the reason is because of poor industry profitability for producers.

Edited by OldMcdonald 4/23/2014 06:35
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