How 4 companies control the beef industry

[shaz]

My prediction is that the meatpackers will eventually use some of those big profits they're making to buy out some of the cow/calf ranchers as they go out of business. Then they will control the entire supply chain from start to finish just like they do for poultry and pork. Or they will get you to be a "contract producer" where you can supply cattle to them but they control everything from the breeding decisions, health protocols and feeding. The key being they are in control and you're just an employee at that point.

Not sure I agree. They control the entire production of chicken and pork and profits are thin to non-existent.
They don't control beef and the profits are unreal at the moment.

Look at Tyson's latest earning statement. Beef is what keeps their doors open. Not because they control the whole process but because they don't.

 

[HDRider]

There is a movement, maybe small, but still quite a few that I know are, using real butter, have went back to whole milk and products made with whole milk. More people are back to eating a lot of eggs, and wanting local sourced meats and produce.

People still eat margarine?

 

[HDRider]

Not because they control the whole process but because they don't.

I disagree. Their beef margins are fat because the DO control the whole process, just a different way.

 

[Ky hills]

People still eat margarine?

We don't but yes the fake stuff is still sold.

 

[J+ Cattle]

They control the entire production of chicken and pork and profits are thin to non-existent.

Are the profits really not there or are the companies very good at reinvesting the profits in the business through automation, expansions, buying out competitors, etc. so that they show no profits and therefore don't have to pay taxes on the earnings?

 

[shaz]

Are the profits really not there or are the companies very good at reinvesting the profits in the business through automation, expansions, buying out competitors, etc. so that they show no profits and therefore don't have to pay taxes on the earnings?

That's a possibility. You'd have to be one of the boys in the C-suite to know the entire truth

 

[Buck Randall]

There is a movement, maybe small, but still quite a few that I know are, using real butter, have went back to whole milk and products made with whole milk. More people are back to eating a lot of eggs, and wanting local sourced meats and produce.

It's not a small movement. Whole milk is outselling 2% by a small margin, and skim is in danger of disappearing from store shelves.

You are being redirected...

www.dairybusiness.com

 

[greybeard]

LOTS of people still buy and use margarine. Why?
Same reason so many consumers buy more pork and chicken rather than beef (Beef-It's What's For Dinner!)
Cost savings.
They WANT to buy and use butter and they recognize it's health benefits are there just as they WANT to buy beef, but can't justify the costs.

Still, butter sales are up while margarine is dropping.
Why?
Taste.

 

[J+ Cattle]

That's a possibility. You'd have to be one of the boys in the C-suite to know the entire truth

I just know that the big corporations will have a high rise building full of accountants using every possible tax shelter, deduction, and anything else available to pay the absolute minimum amount of tax possible. Also, they recently have taken a short term hit on the balance sheets because of having to pay out millions in fines for getting caught in price fixing arrangements.

 

[HDRider]

every possible tax shelter, deduction, and anything else available to pay the absolute minimum amount of tax possible

Don't we all?

 

[TCRanch]

The government isn't going to do anything to help, if so, they would have done it already. The lobbyist have them in their pockets. The solution has to come from us by working together. I'm not saying this is the answer but it is an example of a group of dedicated producers that joined forces for a common cause, that example is US Premium Beef. They had a vision to capture a portion of the market that is the most profitable, the CAB and Prime grades. Quality always demands a premium, the same amount of time, labor, and feed goes into producing "Select" carcasses as it does "Choice, CAB, and Prime" carcasses.

U.S. Premium Beef, LLC

I recently had the pleasure of meeting Suzanne & Andrea, "The Sirloin Sisters" from Strassburger Steaks (which has been family owned for 150 years), when Creekstone Farms Premium Beef brought them (and a few others) to the ranch. Both companies provide only quality beef and are passionate about farm-to-table, supporting local farmers/ranchers, humane treatment, etc. It's a niche market, but not only survived, but thrived during the Covid lockdown. Do their prices reflect that? Absolutely. But people are willing to pay for locally sourced products.

The Sirloin Sisters — Strassburger Steaks

Suzanne and Andrea Strassburger-better known as the Sirloin Sisters-are the fifth generation of their family meat business. In an industry dominated by males, these two city living cowgirls deliver the best in beef and continue the 150-year old tradition of their family.

www.strassburgersteaks.com

 

[SBMF 2015]

I you'll recall recent history, margarine just about put butter out of business. The pendulum has swung the other way now. The public perception of fat being bad is fading but red meat is still demonized.

I guess nobody remembers the 70's when we ate a lot more beef per capita and were healthier than we are now.

The Millennials would eat their own shoe if it was cheap enough. They'd just put more catchup on it, and feel good that they are helping rid the world of cow farts.

 

[farmerjan]

The Millennials would eat their own shoe if it was cheap enough. They'd just put more catchup on it, and feel good that they are helping rid the world of cow farts.

Don't know whether to laugh cry or be mad in response to that post. It is too true....

 

[C-Ranch]

Drought in our area is also forcing some to sell out. Hard to raise cattle or hay with no water.

 

[Atimm693]

I know it's just a small drop in the bucket so to speak, but there are some small outfits raising chickens and hogs outside of the conglomerates.
It seems like some are doing ok with raising and selling heritage breed hogs and pork.
The backyard chicken movement has become big. Lots of people are now supplying their own eggs and some have enough to sell. Some are also processing their own chickens for meat.
We were a part of the local farmers market for a while, and saw that there are several folks that want food that is from local farms. This is a movement that is growing.
The same is true with beef, if people have a choice there then the factors come down to price and availability and comparable quality. There are a lot of consumers that will continue to buy cheaper products, but there is a significant amount of people that are willing to pay more for local sourced beef from individuals. Truth is when you factor in a pound per pound comparison of buying a quarter, half or whole beef vs by the cut from the store the store bought is higher.
The key is building a customer base and maintaining a quality product.
Both producers and consumers deserve to have options available to us
I believe it is foolish to put all of our eggs in one basket ie giving in to and relying on a very small number of large corporations when it comes to our food supply.
On a side note people holler about freedom being in jeopardy. Bottom line if we rely on those few big multinational corporations for our food supply, what happens when something happens? We as individuals and communities need to have a plan B for backup. As long as enough people are still privately involved in agriculture then we can collectively supply more food than people think and we need to always have that option. That is just as important as the right to bear arms, which I am a staunch believer in that as well.

Seems like Covid shook things up enough to make people realize how easily things can go bad when the supply chain is disrupted. I think farmers markets, canning, gardening, etc. is all going to gain quite a bit of popularity as people aim to be more self sufficient.

Pastures that were full here in 2010 are empty of cattle.
Several auctions have gone under. There are several problems here first most of these cattle are being raised on smaller plots not joining other ranching operations in my part of the state. Secondly the younger generation isn't interested. We have created a society that works in a cubicle to go home to a fenced yard about the size of a postage stamp. On Saturday they plan to drive their 80K pickup to the golf course, pull a 75K bass boat to the lake, next weekend a 20K UTV to the deer lease etc.
Even those raised here are running from cattle.
Largest ranch in the county just sold, disposal of 550 head of cattle. Investors are already here to make it a subdivision.

We aren't interested because it's a losing proposition. Land and inputs have skyrocketed but prices remain low. Explain how I'm supposed to buy the $900k 110 acre farm nearby and make it work running 60 cows.

 

[SBMF 2015]

Seems like Covid shook things up enough to make people realize how easily things can go bad when the supply chain is disrupted. I think farmers markets, canning, gardening, etc. is all going to gain quite a bit of popularity as people aim to be more self sufficient.

A very close friend of mine has a sister who is pretty high up in the Ag dept in DC. She said back in February 2020 they literally had a closed door meeting with the president, discussing what they were going to do in 90days when the country ran out of food.
Just another reason to be thankful we live in the country.

 

[C-Ranch]

Yeah glad we are in the country. If society collapses there will be people headed to the country looking for help and escaping the riots that will ensue.

 

[shaz]

Yeah glad we are in the country. If society collapses there will be people headed to the country looking for help and escaping the riots that will ensue.

I'm sure you've thought about what you would have to do in that situation.

 

[C-Ranch]

We sure have. Beef and potatoes isn't the only thing we stock pile

 

[Dave]

Yeah glad we are in the country. If society collapses there will be people headed to the country looking for help and escaping the riots that will ensue.

Distance from population centers will be key. If (or when) society collapses those urban people for the most part will run in circles in their area looking for food. Hopefully they run out of fuel fairly quick. The time of the year will be an issue here too. For me Portland is over 300 miles away. That is a long walk in the summer heat or over the mountains in the winter. Boise is closer at 100 miles. Less people and more food available in the Treasure Valley. Again Heat or cold would make it a long walk.