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Cattle Boards
NCBA, R-CALF, COOL, USDA (No Politics!)
BSE trail goes cold
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<blockquote data-quote="cmjust0" data-source="post: 200972" data-attributes="member: 2882"><p>How many times have I heard on this forum that cattlemen are lucky to get $100/head profit on their cattle, and yet you expect me to believe that $20-$30 of that is going to be chopped right off the top -- with no effect to the supply side? Think about what you're saying -- you're talking about a 20-30% drop in profit for the average cattle producer.. Do you really think producers would just roll over and accept it??</p><p></p><p>If so, then clearly you don't know squat about an open market.. If profit drops, supply follows.. Those left producing are the ones who can afford to continue producing at that price -- usually, the low quality corner cutters and/or very, very high volume producers.. If demand remained high and resulted in a shortage (which it would), prices WOULD increase until the market stabilized.. When it stabilized, that $20-30 fee would be accounted for (or it would never stabilize), and producers would still get their $100/head profit like they did before -- or more, to account for the cost and trouble of getting back in.. </p><p></p><p>Any way you slice it, the cost is passed on to the consumer.</p></blockquote><p></p>
[QUOTE="cmjust0, post: 200972, member: 2882"] How many times have I heard on this forum that cattlemen are lucky to get $100/head profit on their cattle, and yet you expect me to believe that $20-$30 of that is going to be chopped right off the top -- with no effect to the supply side? Think about what you're saying -- you're talking about a 20-30% drop in profit for the average cattle producer.. Do you really think producers would just roll over and accept it?? If so, then clearly you don't know squat about an open market.. If profit drops, supply follows.. Those left producing are the ones who can afford to continue producing at that price -- usually, the low quality corner cutters and/or very, very high volume producers.. If demand remained high and resulted in a shortage (which it would), prices WOULD increase until the market stabilized.. When it stabilized, that $20-30 fee would be accounted for (or it would never stabilize), and producers would still get their $100/head profit like they did before -- or more, to account for the cost and trouble of getting back in.. Any way you slice it, the cost is passed on to the consumer. [/QUOTE]
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Cattle Boards
NCBA, R-CALF, COOL, USDA (No Politics!)
BSE trail goes cold
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