Posted 5/22/2020 23:52 (#8274466 - in reply to #8272992) Subject: RE: Beef imports
North Central Texas
Lots of misinformation on here about imports. Imports are way down even over last year. They peaked in 14 and have been down trending ever since. We are well below the 5 year average and it's shaping up to show imports will make up 8% of the beef market this year. Exports have been making up between 12 and 15% of the beef market. Export beef includes grade beef back to Canada and Mexico, the stuff we won't eat shipped to Mexico and others, and our premium beef sent to primarily Asia.
Let's shut it down. Retaliation hits and exports stop. We begin to overload on the stuff no one will eat here that had value created. That value is gone. Cattle prices decrease.
We load the market with premium beef. Consumers won't spend the extra for it and it has to be discounted along with the fact we just added 7% to the national beef production that must be absorbed by consumers in the US. More beef, prime price reduced to move means cheaper choice and select.
The lack of movement of variety meats and prime will drop the market like a rock.
We aren't importing shelf product, we are importing 90 trim or 50 trim. It's cow and bull used to make hamburger and it's priced accordingly. The majority of our exports are at the top of any. Market in value while our imports are at the bottom.
Some will say we can make the same. They can't because cheap old cows and bulls are what make it work. More cows means more calves. Which will only result in more beef, lowing grade prices.
IMO quality and largers guys adapt fast and survive. Taking imports away knocks the everyday producer in the head by adding competition that was exported before. V cool works, mcool should never be talked about.