Feeder Flash 8/21/19- worth watching

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That is how free enterprise works. You screw everybody you can to make the most you can. We should give the meat packers an award. Maybe the administration will invite them to the White House.
 
So, what happens when many of the seniored producers, (that may be on the bubble of pulling out or retiring to stop the hemorrhaging) say to heck with it. I'm done!(we have already seen a few posts like that in this very board). Who is going to fill those shoes? Who is going to keep on attempting to produce or background cattle in this country? If this board is ANY indication, there are just a handful of folks under the age of 30 that have any desire or interest? I know locally, there are no youngsters grinding in the producer/backgrounder game, except one kid in his 20s that his father has set up very nicely. Is the beef industry dying? Most of the cattlemen I know personally are in their 60s or older yet. This imbalance will be enough to push many of the "seasoned" producers out for good i fear. Then what happens? We just import everything i suppose. A nation filled with consumers; waiting for the next carrot to be dangled?
 
Yes, bball. Beef production in the US is likely to become a novelty. The nature of Capitalism has always been ruthless. The survival of the fittest, if you will, but what happens when all you have left are only predators and no prey? When the top tier of the capitalist pyramid uses these kind of methods to squeeze the lower tier of the pyramid to the point that they are only servants......well, then you don't have to wonder why the other side is pursuing such extreme agendas.
 
Good video as the guy could have cut it to 10 minutes or less and been better. Everything revolves around money and control. The small producers have very little control and therefore get very little money. Until or if ever the producers/backgrounders figure out a way to get more control it will be survival of the fitness as these packers/retailers could care less about the little guys. Even if numbers are down if they can steal them they will continue. I see very little improvement unless more control at the lower level is achieved and now how do you do that? As we see cheaper cattle does not lead to lower prices in the store.

With the big fire cattle prices should have went up as every time I hear a problem at one of the big refineries in Houston oil/gas prices go up why do cattle have the opposite effect?
 
I feel like the big boys want all commercial cattle to be contract cattle. They send you X amount of cows and pay you X amount of dollars per head per month to run them. They provide cattle and feed you provide land and care. In my area it's currently $24-28 a head snd more and more producers are selling out and doing this. It's a guaranteed decent living and a monthly check.
 
TennesseeTuxedo said:
$24-$28 per head monthly?

Yep. They send you a check every month for an agreed upon price which around here is $24-28 a month. It's a huge advantage for people wanting to background cattle.
 
All of this reminds me so much of what has just played out in the tobacco industry. On the contract deal (as the same thing happened in the tobacco industry) as soon as they get what they consider control and a flow of what they feel meets their demand, prices will be downward. They said in the tobacco industry 200 farmers could grow the supply needed and it probably would not take many more farmers than that to grow the cattle supply needed. In the next 5 to 10 years cattle producers will be far and few between. Some think, as some of the larger tobacco growers thought, contracts would turn out to be a good deal, it has not.
 
jltrent said:
All of this reminds me so much of what has just played out in the tobacco industry. On the contract deal (as the same thing happened in the tobacco industry) as soon as they get what they consider control and a flow of what they feel meets their demand, prices will be downward. They said in the tobacco industry 200 farmers could grow the supply needed and it probably would not take many more farmers than that to grow the cattle supply needed. In the next 5 to 10 years cattle producers will be far and few between. Some think, as some of the larger tobacco growers thought, contracts would turn out to be a good deal, it has not.

And hogs and chickens...
 
Contract cattle will be the way to get the younger folks back in the cattle game. There's not as much pain getting in. It's not easy as you still have to have all the same equipment as if you where running your own herd. It's just a cash flow thing, most people can't manage their money so monthly checks make it work.
 
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