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Economics 101, Beef and Cattle
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Posted 5/4/2021 11:03 (#8986855 - in reply to #8986094)
Subject: RE: Read this portion again

Central North Carolina

UNL96 - 5/3/2021 23:14 What Jim has stated here and I’ve copied below contains more truth than many people know. Unless you have worked for a large publicly traded company you would not believe the lengths these co’s will go to maintain short term quarterly profits. These practices are preached through the business schools most c-suite executives have all attended. All these companies will have glorious mission, vision and value statements to con their employees into believing what they are told by management is necessary. Companies actions speak louder than all the virtue signaling they can spew via their corporate communications departments. I’m no longer involved in livestock production but I understand your plight. I don’t know exactly what the solution is but I do know the packers don’t give a dang about the producer. It will be up to you to defend your interests. • Ever since about the mid 1970s, public (stock issuing) corporations work to maximize profits for the STOCKHOLDERS. They do not operate in the best interests of their employees, suppliers, dealers or even their customers except as necessary to maximize profits for their STOCKHOLDERS. This is a basic concept that explains a lot of corporate behavior.

I agree with others that Jim conclusion is on target and is basically what others have been saying on here for years. The problem is that not increasing capacity is not an anti-competitive crime. There is nothing illegal occurring - no collusion, no price fixing, no restraint of trade. Processors are simply taking advantage of under capacity in the beef processing plants of the nation by letting producers drop asking prices to a point where they can buy a slaughter slot. And i don't see anything preventing new start up but money. 

But i take exception to the notion that only S-T profits matter.

Companies of any size today are struggling to keep trained quality employees. Companies that don't consider the needs of their suppliers, labor, and customers will not stay profitable for very long. That is basic business training today. That may not be true of the packing industry, i don't know, but it is not true of most well run US businesses today. I believe at least 2 of the packers are not pubically traded. 

Edited by Douglas 5/4/2021 14:12
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