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A post on a Recent Corbitt video
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Q500
Posted 3/6/2019 00:14 (#7361923)
Subject: A post on a Recent Corbitt video


western colorado
I know you were trying to help rally our markets with UNCLE, but here is the deal: The Packers are the ONLY outlet for any US live cattle. If the Big 4 do not buy the bulk of the live, there is NO PLACE for US producers to really go with them, as there is not enough small slaughterhouse capacity to process all that need to be done, when they need to be harvested. Back when US beef production capacity was primarily based on a closed system, heavily reliant on ONLY cattle born in the US, the probability of the logic you purported for pushing markets higher via the feeders getting together, based on Beef demand and live supply to the Packers, this logic would work. BUT without the capability to limit Beef supply to the Packers to only use US live beef with a MCOOL labeling system, the Packers are able to back off buying live, cattle by buying a **** pile of FOREIGN IMPORTED Beef, to replace the need to buy US live cattle, in order to meet their supply needs at that time, without having to buy US live cattle, until the live price suited them. Truth be told, the Packers would really like to by pass having to pay for any live cattle at all, but if they shut out US producers from our own market, a move like that would be so egregious, the US government would have to step in and hammer their ass for doing so, which is the only reason at this point that they buy any live cattle at all, at this point since they can label meat from any where in the world as "Product of US". And that right here is why the major Packer controlled cattle organizations pushed Congress in June 2015, with full repeal in Dec 2015 to get rid of Country of Origin Labeling for US Beef and Pork , the ONLY 2 products the US makes, that do not have to actually label the origin of the meat in the product. And this is what allows the packers to sit out market weeks, and push live prices down where they want.

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