Interesting paradigm shift in the beef business

[Red Robin]

Here's something interesting to look at. Things like this can't be predicted other than the fact that they will happen again and to us. I wonder when they quit calling chicago the "west" ?

http://query.nytimes.com/mem/archive-free/pdf?_r=1&res=9801E2D8143DE533A25756C1A9679D94639FD7CF&oref=slogin

 

[Mike]

You should read Bens book. Do you have a copy?

 

[Red Robin]

No I don't . I would read it though. Ben, pm me.

I bet those North Eastern beef men never saw it coming. They thought if they produced good enough beef, they'd always be able to keep their market. Little did they know that cheaper cost of production always wins. We're on the wrong side of that equation Mike.

"Brazil is one of the world's most competitive countries in beef, with a production cost of US$ 1.50 per kilogram," he said. The production cost per kilogram in Uruguay is US$ 1.70, in Australia, US$ 2.41, in Canada, US$ 2.85 and in the United States, US$ 3.14. In Argentina the cost is lower: US$ 1.45.According to Queiroz, even in the face of price adjustments due to exchange rates and high demand, the price of Brazilian beef remains competitive.

 

[RobertMac]

"Brazil is one of the world's most competitive countries in beef, with a production cost of US$ 1.50 per kilogram," he said. The production cost per kilogram in Uruguay is US$ 1.70, in Australia, US$ 2.41, in Canada, US$ 2.85 and in the United States, US$ 3.14. In Argentina the cost is lower: US$ 1.45.According to Queiroz, even in the face of price adjustments due to exchange rates and high demand, the price of Brazilian beef remains competitive.

This is not new information...lower cost of production in S.A. has always been known. Some producers have read the hand writing on the wall and already made paradigm shifts...others now see the urgency of making a paradigm shift...most will continue to do what they have always done and hope to survive. Which group are you in RR? And it's your buddy, Tyson and the other large protein processors(our industry partners :wink: :wink: :shock: :roll: ) that are going to tighten the screws on us!!!

Read Ben's book and climb aboard....better late than never...maybe?!?!?!
2010/2012 is not far away......

 

[Red Robin]

"Brazil is one of the world's most competitive countries in beef, with a production cost of US$ 1.50 per kilogram," he said. The production cost per kilogram in Uruguay is US$ 1.70, in Australia, US$ 2.41, in Canada, US$ 2.85 and in the United States, US$ 3.14. In Argentina the cost is lower: US$ 1.45.According to Queiroz, even in the face of price adjustments due to exchange rates and high demand, the price of Brazilian beef remains competitive.

This is not new information...lower cost of production in S.A. has always been known. Some producers have read the hand writing on the wall and already made paradigm shifts...others now see the urgency of making a paradigm shift...most will continue to do what they have always done and hope to survive. Which group are you in RR? And it's your buddy, Tyson and the other large protein processors(our industry partners :wink: :wink: :shock: :roll: ) that are going to tighten the screws on us!!!

Read Ben's book and climb aboard....better late than never...maybe?!?!?!
2010/2012 is not far away......

Climb aboard what?

 

[RobertMac]

"Brazil is one of the world's most competitive countries in beef, with a production cost of US$ 1.50 per kilogram," he said. The production cost per kilogram in Uruguay is US$ 1.70, in Australia, US$ 2.41, in Canada, US$ 2.85 and in the United States, US$ 3.14. In Argentina the cost is lower: US$ 1.45.According to Queiroz, even in the face of price adjustments due to exchange rates and high demand, the price of Brazilian beef remains competitive.

This is not new information...lower cost of production in S.A. has always been known. Some producers have read the hand writing on the wall and already made paradigm shifts...others now see the urgency of making a paradigm shift...most will continue to do what they have always done and hope to survive. Which group are you in RR? And it's your buddy, Tyson and the other large protein processors(our industry partners :wink: :wink: :shock: :roll: ) that are going to tighten the screws on us!!!

Read Ben's book and climb aboard....better late than never...maybe?!?!?!
2010/2012 is not far away......

Climb aboard what?

If you have to ask, you are in the last category...good luck.
If Ben doesn't PM you, let me know, I'll get you in contact.

 

[PORKER]

The price of Brazilian beef remains competitive. Not anymore in the EU. Brazil has No Traceability from the ranch of origin and no records of Antibotics and hormones which got them kicked out of Europe and now Russia wants the Same traceability or they won't buy. Seems the Russians too have had it with Canada.

 

[Red Robin]

This is not new information...lower cost of production in S.A. has always been known. Some producers have read the hand writing on the wall and already made paradigm shifts...others now see the urgency of making a paradigm shift...most will continue to do what they have always done and hope to survive. Which group are you in RR? And it's your buddy, Tyson and the other large protein processors(our industry partners :wink: :wink: :shock: :roll: ) that are going to tighten the screws on us!!!

Read Ben's book and climb aboard....better late than never...maybe?!?!?!
2010/2012 is not far away......

Climb aboard what?

If you have to ask, you are in the last category...good luck.
If Ben doesn't PM you, let me know, I'll get you in contact.

If you can't explain what you mean by climb aboard, I doubt you could find Ben's number. Good luck.

 

[RobertMac]

"Climb aboard" the bandwagon with those of us that realize that there must be changes in the industry if beef producers are going to have any control over our destiny...and more importantly, our children's destiny!

RR, check your PM...I'm sure Ben will fix you up. Let's talk after you read his book.

 

[Mike]

I have an extra book if you don't get in touch with Ben, but I'll need an address.

They're fairly cheap. :lol:

 

[Red Robin]

I have an extra book if you don't get in touch with Ben, but I'll need an address.

They're fairly cheap. :lol:

You know my address goof ball. You know my phone number, address, email address , and have seen pictures of my kids and wife. :lol: That's as close as I want to get to you really. :lol: As the old song (can't remember who wrote it) said , you're a fairly dangerous man. :wink:

 

[Red Robin]

Here's the song mike. No wonder it reminded me of you.

Charlie Daniels Band Lyrics - Uneasy Rider (possibly?)

I was takin a trip out to L.A.
Toolin along in my cheverolet
Tokin on a number and diggin on the radio

Just as I crossed the Mississippi line
I heard that highway start to whine
And I knew that left rear tire was about to blow

Well the spare was flat and I got uptight
Cause there wasn't a filling station in sight
So I just limped on down the shoulder on the rim

I went as far as I could and when I stopped the car
It was right in front of this little bar
Kind of a red-neck lookin joint called the Dew Drop Inn

I stuffed my hair up under my hat
And told the bartender that I had a flat
And would he be kind enough to give me change for a one

There was one thing I was sure proud to see
There wasn't a soul in the place except for him and me
He just looked disgusted and pointed toward the telephone

I called up the station down the road a ways
He said he wasn't very busy today
And he could have somone out there in just about 10 minutes or so

He said," Now, you just stay right where yer at!"
And I didn't bother to tell the darn fool
That I sure as hell didn't have anyplace else to go

So I ordered up a beer and sat down at the bar
When some guy walked in and said, "Who owns this car
With the peace sign, the mag wheels and fur on the floor?"

He looked at me and I damn near died
And I decided that I'd just wait outside
So I laid a dollar on the bar and headed for the door

Just when I thought I'd get outta there with my skin
These 3 big dudes come strollin in
With one old drunk chick and some fella with green teeth

Now the last thing I wanted was to get into a fight
In Jackson Mississippi on a Saturday night
Especially when there was three of them and only one of me

I was almost to the door when the biggest one
Said, "You tip your hat to this lady, son!"
And when I did, all that hair fell out from underneath

They all started laughin and I felt kinda sick
And I knew I better think of something pretty quick
So I just reached out and kicked old green teeth right in the knee

Now he let out a yell that'd curl yer hair
But before he could move I grabbed me a chair
And said "Now watch him Folks cause he's a fairly dangerous man!"

"You may not know it but this man is a spy.
He's a undercover agent for the FBI
And he's been sent down here to infiltrate the Ku Klux Klan!"

He was still bent over holdin on to his knee
But everybody else was looking and listening to me
And I laid it on thicker hand heavier as I went

"He's a friend of them long haired, hippy-type, pinko fags!
I betchya he's even got a commie flag
tacked up on the wall inside of his garage."

"He's a snake in the grass, I tell ya guys.
He may look dumb but that's just a disguise,
He's a mastermind in the ways of espionage"

"Would you believe this man has gone as far
As tearing Wallace stickers off the bumpers of cars.
And he voted for George McGovern for President."

They started lookin real suspicious at him
He jumped up and said "Now just wait a minute Jim!
You know he's lying I been living here all of my life!"

"I'm a faithful follower of Brother John Birch
And I belong to the Antioch Baptist Church.
And I aint even got a garage, you can call home and ask my wife!"

Then he started saying somethin bout the way I was dressed
But I didn't wait around to hear the rest
I was too busy moving and hoping I didn't run outta luck

When I hit the door I was making tracks
And they were just taking my car down off the jacks
So I threw the man a twenty and jumped in and fired that mother up

Mario Andretti woulda sure been proud
Of the way I was movin when I passed that crowd
Coming out the door and headed toward me at a trot

Now I guess I shoulda gone ahead and run
But somehow I just couldn't resist the fun
Of chasing them all just once around the parking lot

Well, they're headed for their car but I hit the gas
And spun around and headed 'em off at the pass
I was slinging gravel and puttin' a ton of dust in the air

I had them all out there steppin and fetchin
Like their heads was on fire and their asses was catchin
then I figgered I had better go ahead and split before the cops got there

When I hit the road I was really wheelin
Had gravel flyin and rubber squeelin
And I didn't slow down till I was almost to Arkansas

I think I'm gonna reroute my trip
I wonder if anybody'd think I'd flipped
If I went to L.A., via Omaha

 

[Red Robin]

"Climb aboard" the bandwagon with those of us that realize that there must be changes in the industry if beef producers are going to have any control over our destiny...and more importantly, our children's destiny!

RR, check your PM...I'm sure Ben will fix you up. Let's talk after you read his book.

I read the book. What's on your mind?

 

[RobertMac]

"Climb aboard" the bandwagon with those of us that realize that there must be changes in the industry if beef producers are going to have any control over our destiny...and more importantly, our children's destiny!

RR, check your PM...I'm sure Ben will fix you up. Let's talk after you read his book.

I read the book. What's on your mind?

Change your opinion on anything?
Do believe the large food companies are going to structure the beef industry with the same control they have over the pork and poultry industries?

 

[Red Robin]

"Climb aboard" the bandwagon with those of us that realize that there must be changes in the industry if beef producers are going to have any control over our destiny...and more importantly, our children's destiny!

RR, check your PM...I'm sure Ben will fix you up. Let's talk after you read his book.

I read the book. What's on your mind?

Change your opinion on anything?
Do believe the large food companies are going to structure the beef industry with the same control they have over the pork and poultry industries?

I don't think I've changed my opinion much Robertmac. I am and have been aware that packers, feeders, and producers all try to create the most profit within their segment even if it's at the expense of another segment. I don't remember where I ever posted that I think differently. I personally am of the opinion that as time goes on , packers are showing more interest in SA than they are in vertically integrating the beef industry in the U.S. I hate to see them go somewhere else but I understand their viewpoint.

 

[RobertMac]

I read the book. What's on your mind?

Change your opinion on anything?
Do believe the large food companies are going to structure the beef industry with the same control they have over the pork and poultry industries?

I don't think I've changed my opinion much Robertmac. I am and have been aware that packers, feeders, and producers all try to create the most profit within their segment even if it's at the expense of another segment. I don't remember where I ever posted that I think differently. I personally am of the opinion that as time goes on , packers are showing more interest in SA than they are in vertically integrating the beef industry in the U.S. I hate to see them go somewhere else but I understand their viewpoint.

How do you think S.A. beef from them is going to effect you? How is it going to effect the smaller processors that don't have access to S.A. beef?

 

[Sandhusker]

I read the book. What's on your mind?

Change your opinion on anything?
Do believe the large food companies are going to structure the beef industry with the same control they have over the pork and poultry industries?

I don't think I've changed my opinion much Robertmac. I am and have been aware that packers, feeders, and producers all try to create the most profit within their segment even if it's at the expense of another segment. I don't remember where I ever posted that I think differently. I personally am of the opinion that as time goes on , packers are showing more interest in SA than they are in vertically integrating the beef industry in the U.S. I hate to see them go somewhere else but I understand their viewpoint.

I understand why a crack addict would run a knife thru my ribs for the $40 in my wallet, too. However, I also understand how that would affect me and will take measures so that doesn't happen. If the packers want to go to South America, I understand that - that's where most of the beef is and it's reletively cheap. We need to understand how that affects us and take measures so it doesn't take us down. Supporting Free Trade and fighting COOL is like walking down crack house row with dollar bills hanging out of your pockets.

 

[Red Robin]

Change your opinion on anything?
Do believe the large food companies are going to structure the beef industry with the same control they have over the pork and poultry industries?

I don't think I've changed my opinion much Robertmac. I am and have been aware that packers, feeders, and producers all try to create the most profit within their segment even if it's at the expense of another segment. I don't remember where I ever posted that I think differently. I personally am of the opinion that as time goes on , packers are showing more interest in SA than they are in vertically integrating the beef industry in the U.S. I hate to see them go somewhere else but I understand their viewpoint.

How do you think S.A. beef from them is going to effect you? How is it going to effect the smaller processors that don't have access to S.A. beef?

I think I've been clear RM on my opinion of how SA beef will effect our beef economy. Cool etc won't have much impact to deter it either. People want cheap food.

 

[Sandhusker]

If cheap was the only consideration, Falstaff would be outselling Budweiser. IGA would be outselling Coke and Pepsi.

 

[mrj]

Consumers, worldwide, want value for the money spent.

We in the USA, and the world have beef in various price and quality ranges.

US beef does enjoy the international reputation as a producer of high quality beef at this point in time.

I believe some producers will continue to improve upon that quality and be rewarded for doing so, if they choose their markets carefully and don't allow that choice to be legislated out of existence.

mrj