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A couple more reasons beef is so high priced
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OldMcdonald
Posted 4/23/2014 16:52 (#3832354 - in reply to #3832314)
Subject: RE: A couple more reasons beef is so high priced


Napanee, Ontario
I don't even know where to start on this.


First of all, i will say that NO - calves (5 weight animals) have not averaged 750-800 dollars over the last 10 years. Feeders have. Calves have not been selling for 1.50 -1.60 for the last 10 years on average. They havn't even been that prices for the last 5 years avg.

2nd - here is a graph from USDA on cow/calf profits from 1983. As you can see, it includes pasture rent, but it doesn't include depreciation, or any other non cash items. It is based off returns over CASH COST .... i.e. the actual costs - not the market costs of feed stuffs - for running the operations. As you know, most livestock operations put up at least a good portion of their own feed instead of buying it all, so this chart is reflection the return at THEIR costs, NOT market prices of feed.

Furthermore, again, since this is cash cost, it doesn't include a provision for labor - unless it was actually paid to someone. So no, you are wrong that it was 50 or 100 /hd AFTER labor. According to the USDA, it wasn't - unless labor costs were paid to someone - as the case maybe for larger operations that are in these numbers.

I've come to the conclusion that you are not a cow/ calf operation, or else there is no way in heck you can pretend to believe all the stuff you are telling me - IE that profits have been fine in cow/calf, and that profit was not the main reason cow numbers have been declining. Anyone who was in the business for the last 20 years, know that that is the BIGGEST reason.





(EstimatedCowCalfReturns.jpg)



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