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Econ101 Rancher

Joined: 26 Aug 2005 Posts: 7061 Location: TX
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Posted: Sat Mar 11, 2006 7:51 pm Post subject: |
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I just got a chicken at the store for 49 cents a lb. and a whole sirloin tip (12.5 lbs) for 2.59 per lb. for the grill. I have to say, although I like chicken every now and then, the sirloin tip was unbeatable. My wife says its the way I cook--she will not order a steak out and discourages me saying you can't beat the home grill/smoking. Mostly oak with a little bit of apple wood thrown on the end for a little more kick.
When chicken goes that low, beef is sure to follow.
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Silver Rancher

Joined: 23 Mar 2005 Posts: 3531 Location: BC
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Posted: Sat Mar 11, 2006 11:05 pm Post subject: |
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| Mike wrote: |
| They are always announced before or during the weekend, so that the big players can get their ducks in a row before Monday morning when the markets open. |
Gives 'em time to find a CCIA tag and nail it to the carcass......
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smalltime Member

Joined: 25 Mar 2005 Posts: 174 Location: SD
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Posted: Sun Mar 12, 2006 1:28 am Post subject: |
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| Think again econ101.
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HAY MAKER Rancher

Joined: 13 Feb 2005 Posts: 8127 Location: Texas
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Posted: Sun Mar 12, 2006 5:57 am Post subject: |
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USDA Announces Inconclusive BSE Test Result
March 11, 2006
USDA/APHIS today announced an inconclusive result on a rapid
BSE test from an animal sampled as part of the enhanced BSE
testing program that began on June 1, 2004. As of March 10,
2006, a total of 644,603 high risk cattle have been tested
and one positive case has been identified. APHIS also has
tested 21,216 clinically normal cattle over 30 months of age
and all tests were negative.
Below is the statement of APHIS chief veterinary medical
office John Clifford regarding the inconclusive test result.
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Statement by Chief Veterinary Medical Officer John Clifford
Animal and Plant Health Inspection Service Regarding
Inconclusive BSE Test Results, March 11, 2006
"Last night we received an inconclusive test result on a
rapid BSE test from an animal sampled as part our enhanced
BSE surveillance program.
"USDA is conducting further tests at the National Veterinary
Services Laboratories (NVSL) in Ames, Iowa, using an
immunohistochemistry test. In addition, USDA's Agricultural
Research Service, will also conduct a Western blot test. The
results of those tests will be released as soon as they have
all been completed, within the next four to seven days.
"This inconclusive result does not mean we have found a new
case of BSE. Inconclusive results are a normal component of
most screening tests, which are designed to be extremely
sensitive so they will detect any sample that could possibly
be positive. In addition, this animal did not enter the
human food chain nor the animal feed chain.
"I want to emphasize that human and animal health in the
United States are protected by a system of interlocking
safeguards and that we remain very confident in the safety
of U.S. beef. The most important of these safeguards is the
ban on specified risk materials from the food supply and the
Food and Drug Administration's feed ban. And by any measure,
the incidence of BSE in this country is extremely low. Our
enhanced surveillance program is designed to provide
information about the level of prevalence of BSE in the
United States, while these interlocking safeguards continue
to protect our food supply.
"We are extremely gratified that since June 2004, all
sectors of the cattle industry have cooperated in this
program by submitting samples from more than 640,000 animals
from the highest risk populations and more than 20,000 from
clinically normal, older animals, as part our enhanced BSE
surveillance program. To date, only one of these highest
risk animals has tested positive for the disease as part of
the surveillance program."
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Econ101 Rancher

Joined: 26 Aug 2005 Posts: 7061 Location: TX
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Posted: Sun Mar 12, 2006 7:07 am Post subject: |
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| smalltime wrote: |
| Think again econ101. |
Smalltime, I just want you to think about this. The Packers and Stockyards Act of 1921 added poultry recently. The protections for poultry have not been enforced. This has allowed the poultry integrators to increase supply in poultry below the market equilibrium by manipulating the pay formula in their "tournament" pay system and by outright breaking the rules in Section 202 a) b) and c) :
(a) Engage in or use any unfair, unjustly discriminatory, or deceptive practice or device; or
(b) Make or give any undue or unreasonable preference or advantage to any particular person or locality in any respect whatsoever, or subject any particular person or locality to any undue or unreasonable prejudice or disadvantage in any respect whatsoever; or
(c) Sell or otherwise transfer to or for any other packer or any live poultry dealer, or buy or otherwise receive from or for any other packer or any live poultry dealer, any article for the purpose or with the effect of apportioning the supply between any such persons, if such apportionment has the tendency or effect of restraining commerce or of creating a monopoly; or....
The 11th circuit, where most of the poultry in the U.S. is raised, has basically gutted these protections with the London case.
This means the supply of chicken in relation to beef is greater than if these market protections for poultry farmers were enforced. In other words, the integrators get more supply of chicken at a lower price. Poultry is simply a cheaper meat.
Is there any wonder why chicken is taking over market share from beef, all other things being held equal?
In not enforcing the market protections for poultry farmers, cattlemen have allowed chicken to be substituted for beef. Poultry is cheaper than what the non market power equilibrium would be and Tyson benefits from that market structure in poultry at the expense of the cattleman.
Grilling season is just around the corner. What meat is better situated to take over market share? The overproduction of chicken at this time portends more market share loss for beef, all other things held equal.
I don't think the NCBA people at the USDA are competent enough to understand what is happening in the markets as they are too busy brown nosing the packers. Oh sure, all this will be blamed on bse or some other market affecting news like that. It will all be excused away. The checkoff dollars will have to really make up for a lot market market share loss created by GIPSA's lack of enforcement of the PSA.
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PORKER Rancher

Joined: 02 Mar 2005 Posts: 4171 Location: Michigan-Florida
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Posted: Sun Mar 12, 2006 4:46 pm Post subject: DUH |
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The overproduction of chicken at this time portends more market share loss for beef, all other things held equal.
The chicken market overseas is DEAD as bird flu killed sales by 80% the last two weeks.Take a look at how much chicken was exported and those EXPORTS have DRIED UP.
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