OCM: "Do my cull cows add value to that 50/50 trim? I think the answer is yes."
The answer is SOME DO! Other cull cows supply "LEANER" hamburger for many fast food sources. One of the primary sources of cull cows for hamburger is dairy cull cows.
OCM: "Does the 50/50 trim add value to my cows? Yes, especially if foreign lean beef is hard to come by."
No, SOME OF your cull cows add value to the 50/50 trim. The supply of 50/50 trim exceeds the supply of cull cows that are available for grinding.
OCM: "By importing lean beef we are reducing the value of our cull cows. Right?"
Wrong!
The supply of available cull cows DOES NOT MEET THE DEMAND. Remember, the demand is for CHEAP LEAN GROUND BEEF not retail priced lean ground beef. McDonalds, Wendys, Burger King, Hardees, Taco Johns, Dominos Pizza, etc. etc. are not going to raise the prices of their hamburgers, tacos, and pizzas. Before they do that, they will feature other protein sources.
The demand for "CHEAP" lean ground beef exceeds the supply.
U.S. producers make more money when they add value to the chuck and round and source "CHEAP" imported lean trimmings to add value to all our surplus 50/50 trim from all those overfat english cattle.
OCM: "You are arguing like you think fat cattle are the only thing the US market has to sell."
Hardly! You are arguing like you fail to understand how we are better off adding as much value to our chucks, rounds, and cull cows as we can and source "CHEAP" imported lean trimmings to add value to our virtually worthless 50/50 trim.
This is a classic example of how backwards Bill Bullard's thinking is when he say's "we don't produce enough beef to satisfy our own domestic market now". That's true BUT AT WHAT PRICE BILL????? We will never meet the demand IF WE KEEP LOWERING THE PRICE!!!!!!!!!!
Typical of the depth of R-CULT's understanding of these issues.
Price is the other half of the supply and demand equation.
I always have to laugh about R-CALF's "supply and supply" logic because they always fail to mention "PRICE" and how "PRICE" factors into "DEMAND".
It's this simple OCM. You have 1000 pounds of 50/50 trim valued at $.08 per pound. Now you can source 1000 pounds of imported lean trimmings for $1.00 per pound or you can grind up 1000 pounds of chucks and rounds that are valued at $1.75 per pound.
WHICH IS GOING TO MAKE YOU MORE MONEY????
WHICH IS GOING TO ALLOW YOU TO PAY MORE FOR THE 50/50 TRIM????
Just once I would like for one of you R-CALF/OCMers to come to a logical conclusion.
Sandbag: "Why not increase the demand for chucks? (the chucks from OUR cattle)
Once again, you can only see one side of the equation - the side of the packers that you have sworn to uphold. You don't want to "devalue" our chucks, but you replace them with imported product that puts no value in producer's pockets. That really makes a lot of sense. Where do producers win?"
Hahaha! You are the one who can't see the other side of the equation because your thought process is too shallow. Like a typical liberal.
YOU DON'T INCREASE THE DEMAND FOR CHUCKS BY REDUCING THEIR VALUE!!!!!!!
You'd be better off to sell the chucks for $1.75 and send the 50/50 to ALPO than to grind the chucks to blend with the 50/50 trim!
THE BEST OPTION IS TO BLEND IMPORTED LEAN TRIMMINGS WITH THE 50/50 TRIM TO MAKE IT WORTH $.60 PER POUND (to sell at $.80 - $.90 per pound) AND SELL THE CHUCKS FOR $1.75 PER POUND????
SEE HOW RIDICULOUS YOUR BACKWARDS IMPORT BLAMING LOGIC IS???? Of course you don't!
Pray tell, how did you ever get hired to lend people money??? That is a scary thought. All I can say is that I am so glad my lenders aren't blamers like you Sandbag.
~SH~