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Faster horses

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A friend of ours told me about this and I said I would post it on this site for him, so that he would find out the TRUTH of the matter. He sent me the article and I am retyping it here:

TOO MUCH BEEF ALREADY?

National Farmers Union expressed concern over the closing of meat packing facilties due to unfavorable market conditions. The reduction in US cattle slaughter comes in the wake of the US Department of Agriculture's decision to reopen the Canadian Border to cattle trade. "The USDA said we should reopen the border with Canada despite BSE concerns because we didn't have enough cattle", NFU Pres. Dave Fredrickson said. "Now the fourth largest packing company in the nation says they have too many cattle...Which is it? Too few or too many?"

The National Beef Packing Company says the industry is killing too many cattle given the current domestic beef demand and the continued closure of the United States largest export markets. The closure of two of its plants will reduce the company's slaughter by 10,000 head per week.
We knew the reopening of the Canadian Border would be a big factor in the domestic supply of cattle," Fredrickson said. "The fact that in just 17 days, packing plants are closing due to oversupply of cattle is completely unacceptable."
NFU is urging the House and Senate Ag committees to conduct hearings as soon as they return from recess to clear up the mixed signals farmers and ranchers are receiving regarding the border issue.

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OK, guys and gals, let's hear what you have to say. The TRUTH and nothing but the TRUTH.
 

Jake

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they are just trying to drive the price down. plain and simple
 

agman

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Faster horses said:
A friend of ours told me about this and I said I would post it on this site for him, so that he would find out the TRUTH of the matter. He sent me the article and I am retyping it here:

TOO MUCH BEEF ALREADY?

National Farmers Union expressed concern over the closing of meat packing facilties due to unfavorable market conditions. The reduction in US cattle slaughter comes in the wake of the US Department of Agriculture's decision to reopen the Canadian Border to cattle trade. "The USDA said we should reopen the border with Canada despite BSE concerns because we didn't have enough cattle", NFU Pres. Dave Fredrickson said. "Now the fourth largest packing company in the nation says they have too many cattle...Which is it? Too few or too many?"

The National Beef Packing Company says the industry is killing too many cattle given the current domestic beef demand and the continued closure of the United States largest export markets. The closure of two of its plants will reduce the company's slaughter by 10,000 head per week.
We knew the reopening of the Canadian Border would be a big factor in the domestic supply of cattle," Fredrickson said. "The fact that in just 17 days, packing plants are closing due to oversupply of cattle is completely unacceptable."
NFU is urging the House and Senate Ag committees to conduct hearings as soon as they return from recess to clear up the mixed signals farmers and ranchers are receiving regarding the border issue.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

OK, guys and gals, let's hear what you have to say. The TRUTH and nothing but the TRUTH.

Prices have gone up since cattle trade has resumed. The fed market was $87-$88 today, up approximately $10/cwt since the border opened. The issue has been and remains weaker demand, not an oversupply of cattle. Competition is what is keeping the kill levels up. There is insufficient demand to cover the cost of cattle given current production levels. If demand was not the issue packers would be able to easily raise the wholesale values to keep pace with live cattle costs without having to reduce slaughter levels.
 

PORKER

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Read that the first thing that was taken in the looting was guns ,meat and anything drinkable.Must have been enough charcoal at home ! Grocery chains and the food lines are moving mountians of Beef.No Potato CHIPS
 

Mike

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We need our exports back. The clowns at the USDA don't seem to realize it yet.
 

agman

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PORKER said:
Read that the first thing that was taken in the looting was guns ,meat and anything drinkable.Must have been enough charcoal at home ! Grocery chains and the food lines are moving mountians of Beef.No Potato CHIPS

How much did they have to lower prices to do that? The price level that it moved at was the result of very aggressive beef features following a $41/cwt decline in beef cutout values and a $15/cwt decline in fed cattle prices. Those lower prices made a big difference; volume by itself is meaningless. Beef is losing market share to pork and poultry.

Additionally, pipelines were emptied to replenish lost product due to power outages from Katrina. As a result, the true lower level of beef demand is being masked temporarily. As soon as the pipeline is filled-guess what?
 

Econ101

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agman said:
PORKER said:
Read that the first thing that was taken in the looting was guns ,meat and anything drinkable.Must have been enough charcoal at home ! Grocery chains and the food lines are moving mountians of Beef.No Potato CHIPS

How much did they have to lower prices to do that? The price level that it moved at was the result of very aggressive beef features following a $41/cwt decline in beef cutout values and a $15/cwt decline in fed cattle prices. Those lower prices made a big difference; volume by itself is meaningless. Beef is losing market share to pork and poultry.


That is what I've been tellin' yall. Glad you agree with me, Agman.
 

agman

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Econ101 said:
agman said:
PORKER said:
Read that the first thing that was taken in the looting was guns ,meat and anything drinkable.Must have been enough charcoal at home ! Grocery chains and the food lines are moving mountians of Beef.No Potato CHIPS

How much did they have to lower prices to do that? The price level that it moved at was the result of very aggressive beef features following a $41/cwt decline in beef cutout values and a $15/cwt decline in fed cattle prices. Those lower prices made a big difference; volume by itself is meaningless. Beef is losing market share to pork and poultry.


That is what I've been tellin' yall. Glad you agree with me, Agman.

You are truly as ignorant of the facts as you appear on these forums.
Did packers lower prices willingly? Did the beef cutout not decline much more than a yield adjusted cash? Would you even know the difference?

Once again you have shown how truly little you know about the beef industry and the inter-relationship of supply and demand. You are the most phony and transparent person to ever post on these forums. Go back and play on you tapped phone as you are in way over your head on this subject.
 

Econ101

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agman said:
Econ101 said:
agman said:
How much did they have to lower prices to do that? The price level that it moved at was the result of very aggressive beef features following a $41/cwt decline in beef cutout values and a $15/cwt decline in fed cattle prices. Those lower prices made a big difference; volume by itself is meaningless. Beef is losing market share to pork and poultry.


That is what I've been tellin' yall. Glad you agree with me, Agman.

You are truly as ignorant of the facts as you appear on these forums.
Did packers lower prices willingly? Did the beef cutout not decline much more than a yield adjusted cash? Would you even know the difference?

Once again you have shown how truly little you know about the beef industry and the inter-relationship of supply and demand. You are the most phony and transparent person to ever post on these forums. Go back and play on you tapped phone as you are in way over your head on this subject.

You still agreed with me. Doesn't matter what the reason. It is a fact.
 

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