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| "There are ways for money to never show in that business"
Sure - the old saying is something to the effect that the butcher never lacks for something to eat. But taking that from a mom and pop shop to today's packing plants is a bit of a stretch.
"why they like to own the animals and feedlots"
When you rely on a commodity to run your business, you want a steady flow into your plant. If you can control risk with hedging, why wouldn't you want to ensure a minimum of disruptions in supply? Certainly, I see no reason why, especially when red ink has been flowing in feedlots the last several years, this implies that profitability is so good for packers.
The chart says it all, pretty much - unless you wish to not believe the data presented. Then it should be fairly easy to do the math yourself, since wholesale meat prices are reported, I think, pretty accurately.
Again, assuming there are excess profits in the business, what is to stop a plant like the one in SD from sharing in those excess profits? | |
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Have packers beat the dog so much it won't come when they call
