Posted 11/24/2021 08:42 (#9338324 - in reply to #9337515) Subject: RE: Cattlemen's Heritage answers are clear
God's Country (N.C. Ia)
ntexcotton - 11/23/2021 19:48
450 million. Wow.
In the last few months a similar plant was sold. It was in bankruptcy but was 1500 hd capacity and had over 700 workers. They had markets and could export to China. The price was 24 million.
Another poster on here wanted me to buy a packing house for 4 million that could cover 600 hd. 425 million to hit 1500 doesn't make sense.
The long term market is moving to diminishing returns for the packer. By 2025/26 those margins will reach negative and see negative the next 10 years after. How do you make that work?
This whole thing is late to the game and preys on those that think things are different. Live in the oilfiled and you realize commodities don't change and times aren't different. Thinking they do gets you in trouble.
Spot on! Was told years ago that the cattle business doesn’t change. Just the players do. I would never invest in a packing house . Period.