DiamondSCattleCo
Well-known member
~SH~ said:That is exactly what you wanted Randy when you stated:
Randy Kaiser: "Or even to own the cattle in large enough numbers to cause a situation of better offers for live cattle from the said packers."
My point is that packer blamers like you criticize the packers for prefenential treatment than ask for that very thing. Meet yourself Randy!
In order for producers to bring about change, we first have to level the playing field. The packers sure aren't going to downsize for us, so we have to upsize, then beat them at their own game.
~SH~ said:That is the part of the Packers and Stockyards Act that is totally outdated. Buyers of any commodity should be able to give preferential treatment to volume suppliers. As you pointed out, preferential treatment is part of the business climate but it sure as hell should never have been considered illegal.
Thats an unfortunate viewpoint. It only allows the bigger to get even bigger. There is a point where company size becomes optimal, and economies of scale no longer have an effect. We're well past that point with the packing industry, as such its even more important to ensure that preferential treatment isn't given to the big players.
~SH~ said:Because Safeway is a large successful corporation, you automatically assume that Safeway was responsible for Future Beef's demise because someone from Future Beef needed someone to blame since they couldn't blame the packer anymore. If they were honest, they would blame the consumer for not paying more.
The other side of this story is that Future Beef wanted Safeway, BECAUSE OF SAFEWAY'S SIZE, to take the financial fall for Future Beef spending too much money on yearlings. Bullcrap! Safeway agreed to market their product, not to shore them up if retail beef prices slid.
I think you need to re-read my posts on the topic. I said it was one of the major reasons for the downfall, not the only one. FB should never have locked themselves into 1 retailer.
As far as Safeway shoring them up, Safeway DID agree to do that. Re-read the original post. Safeway signed a contract agreement in which they agreed to shore up losses, and they did not honor the agreement. Perhaps if FB hadn't had this agreement, they would have looked at alternative ways to weather financial losses. Yes, they should have done that anyway, but by the same token, if a business has signed an agreement, I don't think its unreasonable to expect that business to honor the agreement. Unfortunately, it doesn't always work that way in real life, and FB should have realized that.
Rod