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Vertical Integration of the Beef Industry
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<blockquote data-quote="Bez!" data-source="post: 184935" data-attributes="member: 2830"><p>ollie'</p><p></p><p>You folks have separation in price from one area to another -we have basically the same price from coast to coast.</p><p></p><p>There is no competition for cattle in this country.</p><p></p><p>Vert Int in hogs - you grow them and they tell you what you will get for them. If you like the price, you are doing fine. If you do not - tough - that is what you get. That is what will happen to cattle. May be good for some and not so good for others.</p><p></p><p>I do not claim to have the answer - but I do know this. The primary producer will always be screwed if he does not have a decent animal and at least 4 buyers at the sale barn willing to take his animal.</p><p></p><p>Right now we have one buyer if we are lucky.</p><p></p><p>Captive supply - the big boys run a few thousand out back in their own pens - that way they do not have to buy every time there is a sale. Keeps the price down.</p><p></p><p>I am sure my view is considered overly simplistic - but when you get less than what it costs to raise them it makes it easy to get a view like mine.</p><p></p><p>Bez!</p></blockquote><p></p>
[QUOTE="Bez!, post: 184935, member: 2830"] ollie' You folks have separation in price from one area to another -we have basically the same price from coast to coast. There is no competition for cattle in this country. Vert Int in hogs - you grow them and they tell you what you will get for them. If you like the price, you are doing fine. If you do not - tough - that is what you get. That is what will happen to cattle. May be good for some and not so good for others. I do not claim to have the answer - but I do know this. The primary producer will always be screwed if he does not have a decent animal and at least 4 buyers at the sale barn willing to take his animal. Right now we have one buyer if we are lucky. Captive supply - the big boys run a few thousand out back in their own pens - that way they do not have to buy every time there is a sale. Keeps the price down. I am sure my view is considered overly simplistic - but when you get less than what it costs to raise them it makes it easy to get a view like mine. Bez! [/QUOTE]
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