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Cattle Boards
NCBA, R-CALF, COOL, USDA (No Politics!)
What gross profit are packers REALLY making?
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<blockquote data-quote="TerraceRidge" data-source="post: 1623252" data-attributes="member: 21599"><p>Thanks Jan, I'll look that one up and watch it. Steve, I think the only real way to talk about profit is net profit after all expenses, depreciation, etc. is deducted. That's one problem (at least it seems like it is) with some of the numbers that we're seeing, including the Sterling Beef Profit Tracker. Maybe I'm wrong, but that looks to be to be just reporting the packer margin (the difference between what they pay per head and the total value produced), but it's reporting the cow/calf guy's net profit after expenses. One problem is that I can't imagine how expensive it would be to run a packing plant. Who knows - maybe it's actually really cheap. I just think that by the time you pay all the employees and pay for the building and keep it up to code, it's going to run into some money fast.</p><p></p><p>I do get that boxed beef is going way up and fat cattle are down - that doesn't make a lot of sense to me. It looks like there's no real competition between the packers. I think that's what the R-CALF lawsuit is about, right?</p></blockquote><p></p>
[QUOTE="TerraceRidge, post: 1623252, member: 21599"] Thanks Jan, I'll look that one up and watch it. Steve, I think the only real way to talk about profit is net profit after all expenses, depreciation, etc. is deducted. That's one problem (at least it seems like it is) with some of the numbers that we're seeing, including the Sterling Beef Profit Tracker. Maybe I'm wrong, but that looks to be to be just reporting the packer margin (the difference between what they pay per head and the total value produced), but it's reporting the cow/calf guy's net profit after expenses. One problem is that I can't imagine how expensive it would be to run a packing plant. Who knows - maybe it's actually really cheap. I just think that by the time you pay all the employees and pay for the building and keep it up to code, it's going to run into some money fast. I do get that boxed beef is going way up and fat cattle are down - that doesn't make a lot of sense to me. It looks like there's no real competition between the packers. I think that's what the R-CALF lawsuit is about, right? [/QUOTE]
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NCBA, R-CALF, COOL, USDA (No Politics!)
What gross profit are packers REALLY making?
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