Broke Cattle Markets, Broken Cattle Feeders

Written on:May 5, 2016
 
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The U.S. cattle industry has lost nearly half our cattle ranchers and over 70% of our feeding operations.

Is it time to do something about the abusive market power of the meat industry?

brokecattlefeeders1
A self-explanatory table and a chart showing monthly net returns to feeding.
Data are through March 2016.

brokecattlefeeders2
A 12-year moving average of returns.

Competitive markets adjust over time to big losses and to big profits. Due to the long biological cycle for cattle, such adjustments can take years.

Before consolidation and captive supplies, all of you know that we observed cyles of 10-15 years duration due to these lags. In a competitive market we would expect the 12-year moving average to be fairly stable with no significant trend. Not so. The overall trend in this moving average is strongly negative, revealing a loss of over $100/head in the past 20 years.

The major feeders must be incurring huge losses …. or getting big kickbacks.

Broken markets. Absolutely.

Bob Taylor


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The Confession of an Outlaw – April 15, 1926

Written on:April 5, 2016
 
outlaw

from Tom Giessel The Kansas Union Farmer Thursday, April 15, 1926 A crow sat on an old elm tree, and he was black as black could be I told him it was my belief that he was just an outlawed thief. “O yes, I am a thief.” Said he, “but there are bigger thieves than me; its true, I eat a little corn, and chickens too just newly born; and…

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A Pin Drop.

Written on:April 5, 2016
 
return

Once upon a time when our politicians did not tend to apologize for
our country’s prior actions, here’s a refresher on how some of our
former patriots handled negative comments about our great country. JFK’S Secretary of State, Dean Rusk, was in France in the early 60’s when
DeGaulle decided to pull out of NATO. DeGaulle said he wanted all US military out of France as soon as possible.  Rusk responded, “Does that…

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BFF

Written on:April 5, 2016
 
joke

by Lee Pitts, Livestock Market Digest I don’t get it. Admittedly, there are a lot of things in life I don’t understand, but one of the more puzzling phenomena is rancher’s support of the NCBA while the organization is doing everything possible to hurt American ranchers, including killing COOL. At the same time those ranchers seem to despise R CALF who has had the cattlemen’s back every step of the…

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BANKERS LAWYERS AND POLITICIANS

Written on:April 5, 2016
 
banker

Readers keeping up with current vents can gather from the news that a couple of front runners in the US presidential race have something in common; It’s Goldman Sachs. I wasn’t invited, but unless it’s Warren Buffet I don’t know what anyone would talk about that could possibly be worth the $670,000 speakers fees Hillary collected from Goldman Sachs, just as I don’t know how I would justify asking to…

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MO Bad News: NCBA, cattlemen’s worst nightmare, wants $1 increase in Beef Tax

Written on:February 25, 2016
 
HangingPoster4-15-page-001

Mike Callicrate owner of Callicrate Cattle Co. was recently interviewed by George Sholtz with Big Country 99 The Rooster (KUNQ) Assumed by its name to be an advocate for the cattle industry, the NCBA is actually the independent cattlemen’s worst nightmare and now want to increase the Missouri Beef Checkoff to $2. With its control of the Beef Checkoff Program, the NCBA is: Undermining every effort to restore competition to…

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Sen. Dierks says “NO” to destroying Nebraska livestock markets. Vote “NO” on LB176.

Written on:February 2, 2016
 
dierks

Attached is the letter Sen. Dierks (retired) has asked me to circulate to you on LB176. It is useful to understand that scope and size the price “meltdown” in the hog sector. From 1997 to 2000, 2,500 hog producers were forced out of business. It was a time of deeply and widely felt financial and emotional crisis in our state. Out of the expectation that “somebody ought to do something”,…

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Corporate Farming Bill Threatens Nebraska’s Family Farms

Written on:February 1, 2016
 
HAPPY PIGS ON A FAMILY FARM. 
If pigs could vote, they would say NO to LB176

NEWS RELEASE February 1, 2016 Corporate Farming Bill Threatens Nebraska’s Family Farms The Organization for Competitive Markets is calling on farmers, ranchers and consumers across Nebraska to strongly oppose a bill in the state legislature that would reduce competition in the marketplace by allowing packer ownership of hogs. Nebraska is the only state that still prohibits packers from owning hogs more than five days prior to slaughter. “We can’t let…

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