Evil feedlots and packers making huge profits...........

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dun

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Cattle-feeding margins improved significantly last week, jumping from negative territory to a positive $10.51 per head. Packer margins declined another $4 per head. Packer margins have declined more than $200 per head from last year at this time when packers were $138 in the black. The Sterling Profit Quotient, however, improved back into positive territory at 13.8. The Sterling Beef Profit Tracker is calculated using actual weekly prices for Choice fed steers, feeder steers, feed costs, boxed beef-cutout prices, hide and offal values, and other factors that influence profit margins.

The Sterling Beef Profit Tracker for the week ending 7/11/09:

Average feedyard margins: $10.51 per head.
Average packer margins: -$69.41 per head.
Sterling Profit Quotient: 13.8
 

SRBeef

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Thanks for the information. However I don't understand the "Sterling Profit Quotient". Whose profit is this measuring, the packer or the feeder? As I understand the post, the packer margin decreased but is still profitable. The quote says the Sterling number moved "back into positive territory". But packers profit, while decreased from $200/head to 138/head was and is postive profit???

A member of my family works in the retail grocery business. His feeling was that the meat counter is one of the few profitable areas of retail food stores.
 

mwj

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SRBeef":1fgvn9z5 said:
Thanks for the information. However I don't understand the "Sterling Profit Quotient". Whose profit is this measuring, the packer or the feeder? As I understand the post, the packer margin decreased but is still profitable. The quote says the Sterling number moved "back into positive territory". But packers profit, while decreased from $200/head to 138/head was and is postive profit???

A member of my family works in the retail grocery business. His feeling was that the meat counter is one of the few profitable areas of retail food stores.


You need to read the figures again. The packer figure is still negative. Subtract the $138 FROM the $200 and you have there improved loss :cowboy:
 

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