East Central South Dakota | First the disclamer, i no longer raise cattle (out in 2002), but support the industry strongly like all grain producers should. All the threads below have some thoughts banging in my head i will attempt to let escape. My experience is the packers screw with the markets more than any industry i have ever been involved in (wheat grading second). Once they are on the truck you are at the mercy of the grader-----yield, grade, dark cutter, to big of carcass discount, overfat discount, never ending bull crap excuses to pay you less. Eventually with the unregulated growth of captive supply they used all of the above to discreetly encourage you to quit feeding at 700 pounds and simply give the PACKERS the cattle to finish. BEAT THE DOG
This led some cow guys to say if we can't feed' em out at least lets keep Country of Origin. Market differentiation is a science. How do i differentiate my product from BRAND X to increase my value. I was for Country of Origination because i thought it was a mechanism to differentiate my product to increase value. There is no money in simply cutting throats as a packer. It is what you do with the product as boxed beef and the retail case (exported or domestic) that makes money. Packer concentration as a business made the "process of cutting throats" a commodity (low margin), the product (beef) is the margin, not "the process". The thought process, for me, was a small independent plant like the one in Aberdeen SD might have a chance to compete "AGAINST THE COMMODITY PROCESS" with a branded "dakota beef" ----origin USA beef product. A higher end branded beef product that was not simply a commodity of beef. Without this market differentiation of a branded product, you cannot compete with the efficiencies and concentrations of the big packers. Bar code/tracking technology makes source verification relitively easy TODAY with many countries doing it. Enter center stage---packers. Packers hated Country of Origin Labeling and more less said we have the power with source verification to make sure every E-Coli out break originated from your farm (wether it did or not) and do you want to fight our lawyers ? ?------- scared source verification right out of the market. I don't think we have enough domestic cattle to support Country of Origin Labeling anymore so i am neutral on the issue----Consumers supported both Country of Origin Labeling and Source Verification at the 70-80 percent level---depending on source. BEAT THE DOG
Congress passes Country of Origin Labeling and the President signs legislation--becomes LAW. Packers get to appropriations and the Ag Department and even though it is LAW---it isn't funded and silently slips into the night. BEAT THE DOG
Cattle producers are price takers not price setters. Cattle producers do not have the ability to pass on envirnomental and zoning costs to the end user like other industries do. Regulatory costs cannot be passed on by price takers to the extent price setters can.
Market consolidation and vertical intregation continues with packers, crop insurance guarantees introduced, hydraulic everything in grain (never have to get out of climate controlled cab), auto steer enables you to efficiently swat flies out of cab. END OF RANT---tip your hat to a beef producer who evercame and stayed in business through all the issues i poorly tried to put on paper above. Million dollar guestion is------
The beef dog (cow/calf producer) has been beat for so long by the packers. will the dog (cow/calf producer) come to them when they call with these higher prices. |
Have packers beat the dog so much it won't come when they call
