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beef check off-a follow up to ice on the pumkin and bohunk's post
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Beefbiz
Posted 2/11/2019 18:10 (#7314362 - in reply to #7314006)
Subject: RE: Retail meat values


all over Iowa

No, I said cull prices are low because the supply of cull cows and bulls is pushing the slaughter capacity. There are not enough cows to meet the demand for ground beef, but there are more than enough cows to keep the current cow kill plants busy. The other issue (which I didn't mention before) is that cows are mostly bought live at sale barn and the buyer then has to pay the trucking to the plant, which in many areas adds a lot of cost and affects the bid because there are great cow areas with no cow kill close by - MO would top that list.

I agreed that the availability of imports might be part of the reason no new plants are getting built. Nothing happens in a vacuum. To be more specific, no one wants to build a plant because they are afraid it will be a bad investment when the cow numbers fall back again in a few years. The current supply of imported trimmings would be part of the consideration, but not all of it. There is a business opportunity there for anyone that wants to take it.

And I said even if a plant got built (which would increase competition and should improve bids) we still have a fixed amount of cow beef in the U.S. that does not cover the need for making ground beef, so a new plant would not reduce the demand for imported trimmings.

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