30% negotiated cash purchase price

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HDRider said:
Instead of making you watch the video like some bird would, simply go here to create and submit your letter of support for the 30% cash purchase. Some of you probably will not do this because it is asking the government to do something, and you think the government should do nothing.

https://docs.google.com/forms/d/e/1FAIpQLScy2PxQll9OnebecgLmgBlQoGuKkC_d56Emobjpui1GvhCr5g/viewform


Thanks biker guy.
 
HDRider said:
Brute 23 said:
callmefence said:
What does this do for the typical cow/calf man.
Selling 500 - 600 pound stocker calves?

Sounds like nothing... still too many hands in the cookie jar. It's about feedlots making more of the profit packers are making. :)

If most producers were more financially stable we would set the price and let the rest figure it out from there. I wonder how much storage is in the supply chain from a time stand point if the was a freeze on sales from producers? Bet we could get more attention like that?

Describe a scenario where producers set the price. How would that work?

Producers would have to "unionize" basically. I know there is a broad spectrum of the cattle coming in, but if sales would help classify the cattle we could set a standard price for each classification, or at least a minimum. Producers would have to be able to take it or leave it though.
 
Brute 23 said:
HDRider said:
Brute 23 said:
Sounds like nothing... still too many hands in the cookie jar. It's about feedlots making more of the profit packers are making. :)

If most producers were more financially stable we would set the price and let the rest figure it out from there. I wonder how much storage is in the supply chain from a time stand point if the was a freeze on sales from producers? Bet we could get more attention like that?

Describe a scenario where producers set the price. How would that work?

Producers would have to "unionize" basically. I know there is a broad spectrum of the cattle coming in, but if sales would help classify the cattle we could set a standard price for each classification, or at least a minimum. Producers would have to be able to take it or leave it though.

I see. I am more in the mind of a Co-Op and using a value chain going into small processors. That is why I push the idea of small processors so hard.

If we had a robust market of small processors we would not see this mega processor issue being so dire.
 
I dont want to start a fight on this but none of this will change because the majority of the producers want to keep doing it "the way they have always done it". We have as good of odds of revamping the cattle market as revamping social security... and for the same reason.

You should hear the negativity I get just telling people about selling direct to some one who takes it straight to the consumer. It's amazing how hard it is to give people more money just because it's different than what they are use to.
 
Brute 23 said:
I dont want to start a fight on this but none of this will change because the majority of the producers want to keep doing it "the way they have always done it". We have as good of odds of revamping the cattle market as revamping social security... and for the same reason.

You should hear the negativity I get just telling people about selling direct to some one who takes it straight to the consumer. It's amazing how hard it is to give people more money just because it's different than what they are use to.

Producers may have some reluctance, but I would question how well they understand the value chain. Change is hard for some folks. That is fine, they can keep doing what they always have. No one is trying to take that away.

The real, very real, obstacle is the mega processors. They have paid for laws that make small processors impractical and unprofitable. Many countries allow meat sales in a much easier way than here in the US. France, England and other Euro countries to not make it against the law for the small producer to sell to the public, and into retail outlets.

The calf producer has simply been out bid and out maneuvered by the mega processors. We are individuals where they are organizations with many thousands of employees and deep pockets. Your union idea could help that, but the Cattlemen's association is our union of sorts, and you see how that works out. Unions breed bureaucracy, corruption and a huge level of self interest and myopic self perpetuation.
 
As long as the ones that want to keep doing it the same old way out number the ones who want change, it won't change. Its a time issue. They are going bankrupt or dying daily but the opposition my have gotten too strong already.

The cattle industry is not ready for the strength that these "information generations" have. I can tell you no one near my age group is saying lets keep doing it like this. I'm pretty sure we all see that it is not working and will have to change.

I agree with the down side of unionizing or associations. I would much rather see a co-op based business that shared profits thru out the whole chain more evenly. That is so hard to get going off the ground though. Its going to take some one more established to switch over to some thing of that nature IMO.
 
Brute 23 said:
As long as the ones that want to keep doing it the same old way out number the ones who want change, it won't change. Its a time issue. They are going bankrupt or dying daily but the opposition my have gotten too strong already.

The cattle industry is not ready for the strength that these "information generations" have. I can tell you no one near my age group is saying lets keep doing it like this. I'm pretty sure we all see that it is not working and will have to change.

I agree with the down side of unionizing or associations. I would much rather see a co-op based business that shared profits thru out the whole chain more evenly. That is so hard to get going off the ground though. Its going to take some one more established to switch over to some thing of that nature IMO.
Again, the producers may not be active, may not be aware, but the effective resistance is at the mega processor level
 
Don't know that he explained it, but interesting anyway.

You don't have to watch, just listen.

https://www.youtube.com/watch?v=DHTeiaxL6XM
 
Look at Oregon Country Beef. It is a coop of producers. It was the brain child of Doc and Connie Hatfield. They started it along with about a dozen other rancher in 1986. It is now up to around 80 members. I know several members. They retain ownership through the feedlot. They pay to have their cattle processed at a plant and market them their self to grocery stores. I met Connie at a workshop in 1999. She gave a pretty good presentation on how they raise and market their beef. The pluses and the struggles. Doc and Connie were the driving force behind this. And it takes a full time driving force to make this work. It is not a part time job. Doc was definitely a driving force person. I don't know who is at the controls now. Doc past away some years ago. And if Connie is still with us she has to be getting up there in age. But google Oregon Country Beef and you can read all about them.
 
HDRider said:
BC said:
callmefence said:
What does this do for the typical cow/calf man.
Selling 500 - 600 pound stocker calves?
It keeps the feeder in business so he can buy your stocker calf after he gets big enough to feed.

Right now TX, OK and NM only about 7 to 8 percent of fat cattle are sold on a negotiated bid. Those negotiated bids set the market for the various grids.

The upper Midwest sells over 50% on a negotiated bid
HD, go back and watch the whole thing. Corbett Wall explains that the farmer feeders in upper Midwest do sell about 50%, BUT there are other areas that sell less than 10% and they are big feeding areas.
 
BC said:
HDRider said:
BC said:
It keeps the feeder in business so he can buy your stocker calf after he gets big enough to feed.

Right now TX, OK and NM only about 7 to 8 percent of fat cattle are sold on a negotiated bid. Those negotiated bids set the market for the various grids.

The upper Midwest sells over 50% on a negotiated bid
HD, go back and watch the whole thing. Corbett Wall explains that the farmer feeders in upper Midwest do sell about 50%, BUT there are other areas that sell less than 10% and they are big feeding areas.

I did see that. I wish I could post the chart he showed.
 
I found this today

https://uscattlemen.org/usca-launches-effort-to-secure-minimum-percent-of-negotiated-cattle-sales/

Copy-of-MINIMUM-NEGOTIATED-PURCHASE-768x768.jpg
 
There are some Midwest coops that direct market beef. The one I know is producing grass fed, but has been struggling to compete with South American imports. That brings us back to labeling.

This virus thing has been a boon to these direct marketers. More customers, more demand, at profitable prices. Meanwhile the commodity producer is seeing losses increase. A local store was selling New York strip for $6.79 this week. Who is making money on that?
 
Stocker Steve said:
There are some Midwest coops that direct market beef. The one I know is producing grass fed, but has been struggling to compete with South American imports. That brings us back to labeling.

This virus thing has been a boon to these direct marketers. More customers, more demand, profitable prices. Meanwhile the commodity producer is seeing losses increase.

A lot of people bet heavy on marketing grass finished to have their legs cut off by the loss of COOL, and imports from countries with year around grass
 
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