Ranchers launch effort to build own meat plants to fight against low beef prices
Ranchers are fighting back against big meat processers, launching an effort to build their own plants
www.foxnews.com
If the higher retail prices are due to government controls (I think that they are) then the headline would honestly be "Higher fake retail beef prices opens the door wider of fake meat.""Higher retail beef prices opens the door wider for fake meat."
And isn't that the goal?
JBS grew to the giant they are today by buying out small processors and aggregating to mega plants.Anyone remember IBP (Iowa Beef Producers). I believe they started out as a coop. They must have gotten to be fairly large. I know they had a very big plant in Washington. But they sold out to Tyson.
Tyson at Joslin, IL started out as Illini Pack, then became part of IBP, and is now one of the bigger (if not biggest) Tyson beef plants.Anyone remember IBP (Iowa Beef Producers). I believe they started out as a coop. They must have gotten to be fairly large. I know they had a very big plant in Washington. But they sold out to Tyson.
? If you need $2,800-$3,000/hd to make money you have WAY more over head than the avg feed lot. I feel like $100 profit per head is a home run. Sometimes we're thankful for a $25/hd in the black.can they pay the $2 a pound the producer needs to be profitable
I probably should have said $2 @ 825# steer. I say that because it seems most say that would make them semi profitable. I'm in money at $1.50 on a 825# steer, $2 would make life much easier though. I have no idea what it takes to make money on a 1,400-1,600 pounder ready to slaughter.? If you need $2,800-$3,000/hd to make money you have WAY more over head than the avg feed lot. I feel like $100 profit per head is a home run. Sometimes we're thankful for a $25/hd in the black.
We've both seen it on CT time and time again; " wean them in the morning sell them in the afternoon ". A lot of producers either don't have the space or just don't want the risk of back grounding their calves. Green yearling strs always bring a premium.I probably should have said $2 @ 825# steer. I say that because it seems most say that would make them semi profitable. I'm in money at $1.50 on a 825# steer, $2 would make life much easier though. I have no idea what it takes to make money on a 1,400-1,600 pounder ready to slaughter.
I definitely think there's a place for mid size independent meat packer/butcher shops. I'm not talking about the ones you carry a feeder calf or lame bull to but, a bigger one that buys from feedlots and sells to the public and local supermarkets. I'm just not sure how much they'll help the 90% of producers selling calves at 500-800 pounds. It would be very interesting to know the percentage of cow/calf operations that are willing to wean and grow a calf to 800 + pounds. I'm not talking turn one into a butterball with feed but keep it for 9-10 months after weaning to let him build frame and be a good feeder. It seems we currently have cow/calf operations and yearling operations with very few in between.
When you say a "green" steer are talking one that's been weaned and grown out over 18 months or one that's a year old? I've been keeping mine a little longer every year so this interested me. Last 3 yrs I've been weaning in November and selling in July/August. I realize not everyone can or is willing to do this but it's the only way I've found to be profitable, or at least make enough to keep improving and expanding.We've both seen it on CT time and time again; " wean them in the morning sell them in the afternoon ". A lot of producers either don't have the space or just don't want the risk of back grounding their calves. Green yearling strs always bring a premium.
If a 800lber brings $2 =$1,600. Figure a $1 a pound for another 600lbs = $600. If you want to " build in " $100 profit you would need $1.64/lb for a 1,400lb finished str. The bid last week was $1.24. $0.40 different. 1,400lbs * $0.40 = $560. You take that away and the packers are making $140-$240/hd. That's fine. They should be able to make a go of it with that profit margin.
Just remember, if the cattle feeders are making another $560 a head that doesn't mean they will be willing to pass it all along to the cow calf guys. If I'm making $100/hd profit it's time to start thinking about upgrades to equipment and facilities. If I invest profits into maintenance and improvements I'm passing the profit on, just not all to the next wrung down the cattle producing ladder.
Are you talking about the one going in on the Red River? If so I haven't heard anything in a good while. Was supposed to be a slaughterhouse and something else then when he drilled the water wells he hit cold water so was going to have fresh pike too. I know he's spent a fortune out there but haven't heard anything in a good while.Lucky
Green yearlings are yearlings that have been running on grass or wheat pasture and haven't seen a lot of grain. They are learn and desirable to the feed lots because they are at a point where they have the frame and age that once you get them started good you can really push them hard.When you say a "green" steer are talking one that's been weaned and grown out over 18 months or one that's a year old? I've been keeping mine a little longer every year so this interested me. Last 3 yrs I've been weaning in November and selling in July/August. I realize not everyone can or is willing to do this but it's the only way I've found to be profitable, or at least make enough to keep improving and expanding.
When you say $100 per head profit would be very good I'm guessing you are talking about running big numbers of calves. From what little I know the cattle business is a numbers game, it takes allot of cattle to make it work.