This is from the second half of the commentary I posted above and addresses what you are saying.

BEEF IS BACK CAMPAIGN

The USDA July 1st cattle on feed report will be remembered mainly in future graphs as illustrative of the bottoming of cattle on feed numbers and the beginning of increasing numbers of cattle placed on feed to be available for market at a later date. It also is a good starting point for the industry to begin efforts to make the public aware that "beef is back" and to expect larger supplies in the future that will be characterized by MORE BEEF AT CHEAPER PRICES.

If by some act of magic, we were able to deliver a normalized slaughter of 650,000 cattle to the marketplace today, it would be a disaster taking the live market under $1/pound. The marketplace is not prepared to accept more beef. During the past two weeks of 538/539,000 head slaughter, the beef cutout has done little more than lose additional ground. Grocers are concentrating on generous margins generated by pork. Food service businesses have dropped off several beef options from menus and substituted cheaper alternative meat options.

It doesn't take a genius to recognize that material work on the part of the industry is necessary to prepare the ground work necessary to prepare the food service businesses for the return of beef. This will require winning over retailers and restaurants to the fact that not only is beef the preferred meat but those handling beef can do so at a profit.

Many of those involve in beef production currently question the fact that people can make money producing beef. Except for the breeder, all sectors in the beef pipeline are losing money currently. The short supplies of the past two years, now aggravated by holding back breeder heifers, has taken a toll on each sector as competition has kept input cost out of line with the final value recognized at each point of sale.

The bunching of placements expected in late summer and fall will thrown additional supplies on a market early next year and the marketplace is not ready to absorb increasing numbers of cattle without structural changes. American business is too often characterized by short term thinking and the criticism is a fair one. The beef industry needs to reach the decision makers at the top of the many corporations that depend on beef as a source input to their food offerings. It is only when menus change and beef features are commonplace that the marketplace will be able to accept the building supplies without a major disruption to price.