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Joe Luter is after your industry

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the chief

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If he does to beef production what he did to pork...


DES MOINES, Iowa -(Dow Jones)- Smithfield Foods Inc. (SFD) (SFD), the nation's largest pork processor, said Wednesday it intends to build at least one beef- processing plant in the U.S. Southwest soon.

The plant would be supplied from cattle feedlots that Smithfield (SFD) and a partner already operate. Those feedlots are in Texas, Oklahoma, Colorado, Kansas and Idaho.

The facility is expected to cost about $150 million, half of which is likely to be assumed by an unnamed partner, Smithfield Chief Executive Joseph W. Luter III said during a conference call.

"We'll be applying for permits very shortly," he said. Luter indicated that a second processing facility could be added later if financially justified.

"We have enough cattle under feed to supply two plants," Luter said.
 

Sandhusker

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Haven't we been told by the packer backers that the big packers would never get involved in vertigral integration in the beef business? This appears to be another strike against their credibility.
 

mrj

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Sandhusker said:
Haven't we been told by the packer backers that the big packers would never get involved in vertigral integration in the beef business? This appears to be another strike against their credibility.

You owe us some direct quotes after posting that statement!

MRJ
 

Sandhusker

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MRJ said:
Sandhusker said:
Haven't we been told by the packer backers that the big packers would never get involved in vertigral integration in the beef business? This appears to be another strike against their credibility.

You owe us some direct quotes after posting that statement!

MRJ

"Us"? Is that your admission of being a packer backer, MRJ?
 
A

Anonymous

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Sandbag: "Haven't we been told by the packer backers that the big packers would never get involved in vertigral integration in the beef business? This appears to be another strike against their credibility."

Who said big packers would not get involved in vertical integration?

Your inability to answer that question with an actual quote is another strike against your credibility.

CREATING "ILLUSIONS" AGAIN HUH?????


~SH~
 

mrj

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Sandhusker said:
MRJ said:
Sandhusker said:
Haven't we been told by the packer backers that the big packers would never get involved in vertigral integration in the beef business? This appears to be another strike against their credibility.

You owe us some direct quotes after posting that statement!

MRJ

"Us"? Is that your admission of being a packer backer, MRJ?

Sandhusker, sorry that I did not make myself crystal clear for you. Guess it was silly of me to think that those of "us" reading your post were deserving of actual quotes from those you CLAIM are "packer backers", or that you would do it simply to verify your claims.

MRJ
 

Econ101

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Vertical integration will allow those companies that have vertically integrated to capture the profits out of the respective industries instead of the producers. When there is no longer a real market for cattle, and it is controlled by completely by large companies, the profitability of the industry will be captured by the integrators. It has happened in poultry, pork, and Pickett showed one way how it has happened in beef. NCBA is leading the cattle industry into the fold.
 

Sandhusker

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MRJ said:
Sandhusker said:
MRJ said:
You owe us some direct quotes after posting that statement!

MRJ

"Us"? Is that your admission of being a packer backer, MRJ?

Sandhusker, sorry that I did not make myself crystal clear for you. Guess it was silly of me to think that those of "us" reading your post were deserving of actual quotes from those you CLAIM are "packer backers", or that you would do it simply to verify your claims.

MRJ

Here's what good 'ol SH had to say, "Integration is occuring from the bottom up in the beef industry (USPB), not from the top down. You are totally backwards in your thinking. Typical blamer!"

I don't know who he was calling a blamer this time, there are so many of us who have been the recipient of that blessing. :lol:

So, was he right, MRJ?
 

Econ101

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Red Robin said:
still nothing there about vertically integrating beef .

Red Robin, it will happen before you know it. When feeders are out of the buying loop or only there in name, the market will be vertically integrated to the cow/calf producers. With only one or few buyers for those calves and a long distance that is completely controlled by the packers from those calves to the plate, who in the marketing chain will get the benefits of that part of vertical integration?

At first the packers will discriminate against everyone who will not follow their plan, and consolidate their control in that segment. It will look as if "efficiency" is pushing those changes. After consolidation and or control through contracts, the integration will be accomplished to the calf producers. When there are no feeders pushing margins in their business, their demand for calves will no longer exist, it will be a part of the integrated company's demand. They will control the value cattlemen get for their cattle completely and continue to expand the margins on their operations at the expense of the cattleman's margins.

We will have supply management in the cattle markets and it will be controlled by the packers. Pickett showed one way it could happen.

You cattlemen are falling for the same tricks that the poultry and hog growers fell for, only you have two examples to warn you about what is going to happen and likely ways of it happening.

Sit back and do nothing and you will get the same results as you substitutes, chicken and pork.

You think they can't discriminate against you and make you do what they want? Wait until you have to pay bills or lose the farm. GIPSA is a joke when it comes to enforcement of the PSA. I hope you don't have to learn that lesson personally.
 

mrj

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Sandhusker said:
MRJ said:
Sandhusker said:
"Us"? Is that your admission of being a packer backer, MRJ?

Sandhusker, sorry that I did not make myself crystal clear for you. Guess it was silly of me to think that those of "us" reading your post were deserving of actual quotes from those you CLAIM are "packer backers", or that you would do it simply to verify your claims.

MRJ

Here's what good 'ol SH had to say, "Integration is occuring from the bottom up in the beef industry (USPB), not from the top down. You are totally backwards in your thinking. Typical blamer!"

I don't know who he was calling a blamer this time, there are so many of us who have been the recipient of that blessing. :lol:

So, was he right, MRJ?

With the POSSIBLE exception of this new Smithfield venture, believe it is correct that the vertical integrations to date are from "the bottom up", that is, producer owned. Don't see how you can claim he is not right about that unless you have more/different evidence than has been presented.

BTW, who 'forced' the beef producers into the deal with Smithfield? It appears they believe it is going to be more profitable for them than what they had done before. We still have choices and some of us still are reluctant to ask government to say who can and who cannot own cattle, or to whom cattle producers may sell their cattle.

MRJ
 

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