East Central South Dakota | .....you are trying to be an independent in an industry that is totally and fully integrated from top to bottom. 2-3 companies own the sows, the feeders, the finishers, the kill floor, the wholesale distribution, and the retail meat case with their own trademarked brands. They are pulling cash or losses out of every segment of the business and they all eventually end up in the same pocket. Tyson and the bunch have repeatedly shown they are willing to bleed on the supply side (finishers) to keep the cost of supply at or below COP. They will make it up in the other business segments of the monopoly. I could be totally wrong on this, but this is how I see it. I see them putting the risk and eventual hurt on farmer cattle feeders also. Won't own the cows, but if there is only 3 of you bidding on calves you don't have to own cows.
Looks to me the choice is let them supply the hogs and soybean meal/feed ( price doesn't matter to you then ), you use your facilities and you get to do chores for them for $25,000 to $30,000 a year with no risk to you. You get to keep the manure to spread on your fields as a benefit.
I applaud an independent feeder, but see no future in it. Truly wish I was wrong. It makes me ill the public and Justice department let this type of business model exist. They say it is the business model that puts food on the table the cheapest. Will it in the future when all the redoak's are gone ? ? ? |
South American corn
