PRICE FIXING IN THE BEEF INDUSTRY

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3waycross

3waycross

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And there in lies the rub! YOU WILL NEVER GET PRODUCERS TO AGREE ON ANYTHING LONG ENUF TO MAKE THAT HAPPEN. FWIW I include myself in that remark.
 

callmefence

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The problem producers have is the small producers. Lots of people in cattle ( a majority I'd say) that don't live off cattle. They'd do it for free. They'll bitch but they'll still do it.
The families that depend on ranching for a living have to compete with that beef. It's going to get raised and sold no matter the price. And it's a bigger amount than Brazil and often high quality.... I'll include myself as part of the problem.
 

shaz

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Do you think jbs cares if we reduce supply?
All that would happen is they would then bring more of the beef they already own from Brazil
They can only do that to a certain extent. If there were an extra 10 million head available our prices would be worse than they are now.
 

HDRider

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Lies and more lies - Tell me what changes in 3 months, or 6 or even a year. Nada...


"USCA commends the Biden-Harris Administration on this important first step [as they pretend to do something] towards addressing concentration in the meatpacking sector. We look forward to working with USDA leadership, including the newest advisor for Fair and Competitive Markets, to investigate illegal and anticompetitive practices in the cattle marketplace."​

At least they have their facts right, as they fool us again with lies and more lies

Four large conglomerates overwhelmingly control meat supply chains, driving down earnings for farmers while driving up prices for consumers. The meatpacking industry buys cattle, hogs, and chickens from farmers and ranchers, processes it, and then sells beef, pork, and poultry on to retailers like grocery stores. The industry is highly consolidated, and serves as a key choke point in the supply chain​
 

shaz

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Tyson's push back. FYI- Tyson made $2.70 per share this quarter which was a blowout. Mostly on beef.

Tyson Foods Rejects Meat Industry Conclusions Drawn by White House -- Commodity Comment​

BY Dow Jones & Company, Inc.
— 7:31 PM ET 09/08/2021

Tyson Foods (TSN) rejected comments by the secretary of agriculture and the director of the National Economic Council about the meat-processing industry during a White House press briefing on Wednesday.
The Biden administration said it would take action against what it calls a "concentration" in the meat-processing industry.
"Four large conglomerates overwhelmingly control meat supply chains, driving down earnings for farmers while driving up prices for consumers," the White House said in a statement.
The Biden administration said it would enforce "antitrust laws, boost competition in meat-processing, and push back on pandemic profiteering that is hurting consumers, farmers, and ranchers across the country," the White House said.
Tyson responded by saying the "increase in beef prices (is) due to unprecedented market conditions.
"Multiple, unprecedented market shocks, including a global pandemic and severe weather conditions, led to an unexpected and drastic drop in meat processors' abilities to operate at full capacity.
"This led to an oversupply of live cattle and an undersupply of beef, while demand for beef products was at an all- time high," Tyson said. "So, as a result, the price for cattle fell, while the price for beef rose."
"Today, prices paid to cattle producers are rising," Tyson said. "Labor shortages are also affecting the nation's pork and poultry supply."
Write to Patrick Chu at [email protected]
(END) Dow Jones Newswires
09-08-21 1931ET
Copyright (c) 2021 Dow Jones & Company, Inc.
 

TennesseeTuxedo

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The problem producers have is the small producers. Lots of people in cattle ( a majority I'd say) that don't live off cattle. They'd do it for free. They'll bitch but they'll still do it.
The families that depend on ranching for a living have to compete with that beef. It's going to get raised and sold no matter the price. And it's a bigger amount than Brazil and often high quality.... I'll include myself as part of the problem.
Lot of truth right here. I'm guilty of it. We carry around 90-100 mommas and if I used a real sharp pencil I doubt we do much better than break even in a normal year. They keep the grass eaten down and the ag tax rate in effect. For that I thank them.
 

HDRider

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Lot of truth right here. I'm guilty of it. We carry around 90-100 mommas and if I used a real sharp pencil I doubt we do much better than break even in a normal year. They keep the grass eaten down and the ag tax rate in effect. For that I thank them.
Regardless of WHY we do it. It should be profitable, but it never will be when packers set the price.
 

HDRider

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Something is really odd when you look at Tyson's profit by sector.
Beef - 22.6% (Who makes 22% on mass produced food?)
Pork - 3.9%
Chicken - (8%) that's losing 8%

Unfortunately we can't look at the financials of the other big boys.
 

WFfarm

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It was also a accident when Tyson and others where indicted and jbs ,Tyson have paid fines and settlements totaling 100s of millions of dollars in price fixing of both pork and chicken but they would never fix prices of beef
Did the fines go to the government, or the farmers and producers that got screwed over?
 

Rmc

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Part of tysons loss in chicken was probably due to the $250 or so million they paid in fines and to settle law suits of price fixing
 

Rmc

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I’m July jbs agreed to pay $20 million for price fixing of pork and agreed to cooperate against the other suppliers Smithfield agreed to pay 83 million for price fixing of pork.
With charges and settments in price fixing of both pork and chicken . Those prices are now under a microscope.
So the only place left to make money for the big boys at the moment is beef
 

SBMF 2015

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That's great and all, but the lot selling 20000 head is getting screwed the same as a 20 head lot.
We have laws in this country, and it's the job of the government to enforce them, but right now crony capitalism is in control. Only way to fix that is to get rid of the cronyism.
The feed lot selling 20,000 hd is also locking in their feed expenses and contracting those cattle when they show up. They do a better job of marketing, because they have to.
If a feeder finishes 20,000 hd a year, that's roughly 47 semi loads of fat cattle a month. The packers will bid a little better, on volume, especially if there is consistency in the end product.
 

shaz

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Part of tysons loss in chicken was probably due to the $250 or so million they paid in fines and to settle law suits of price fixing
Correct.
Tyson’s chicken business routinely loses however
 

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