Monopoly in the Meat Case?

[mrj]

Jason, "The only thing as beef producers we want to see is new beef products coming to market so consumers get what they are asking for. Convience, consistancy, and they will become loyal customers."

How are customers even going to be given the choice, let alone buy anything other than the big boy's product when small and new outfits can't outbid them for the shelving space? How can a consumer buy what they can't see?

This slotting fee concept is a bunch of crap to the consumer. Those funds paid to grocers have to some from somewhere, and you can bet the outfit writing the check pumps somebody else for the money. Slotting fees have become another weapon for might to make right and the consumer loses out on loss of selection. Competition for the consumer's dollar is less and the conusmer takes another hit.

Sandhusker, from what I've heard over several years past, is that slotting fees have been a fact of life for many, many years in at least the major supermarkets. I haven't heard any consumer complaints about it, have you?

While I don't necessarily like or approve of it, it seems to be a fact of life and working to find ways to deal with and improve the situation when and where possible seems reasonable.

Sure have gotten a lot of new consumer friendly products into consumers hands doing whatever NCBA Federation division has done to accomplish that factor, in spite of the slotting problem.

My daughter in the Omaha area really appreciates it when she can have a great beef dinner on the table in minutes on especially busy evenings resulting from two parents with demanding jobs and two kids with a range of church, school, music and community service activities going full speed.

I'm sure there are millions of families like them across the nation who care little about the details of slotting fees, but want those convenient, nutritious, and tasty heat and eat beef entrees.

Do any of the rest of you have any solutions to offer........other than breaking up the big packers and retailers.......because that sure isn't going to happen real soon, IMO.

MRJ

I'd be willing to lay down a tidy sum that the main reason there hasn't been much feedback from consumers on slotting fees is because most consumers are totally unaware of them.

How do slotting fees benefit the consumer? I can think of absolutely nothing. I can, however, think of ways they are detrimental. Just remember a little rule of business - money is not created nor destroyed, it is merely transferred. We know it is being transferred directly to the retailers, where is it being transferred from? Is it benefical to the end transferee? Is this the best means to transfer the wealth?

I won't comment much on you patting the NCBA on the back for what the checkoff has paid for....

I'm not advocating breaking up anybody - just lay down some common sense rules and then ENFORCE them.

Why do you refuse to admit that the Federation of State Beef Councils IS the Beef Checkoff? The Federation division IS the national organization of state Beef Councils (possibly having a different name in some states). SD Beef Industry Council, similar to most states, is a board representing seven statewide beef organizations, plus the SD LMA (representing their auction market members in SD plus claiming to represent cattle producers who do not join organizations, although they have no vote in SDLMA). SDBIC manages the Beef Checkoff in SD. They send representatives to the Federation division of NCBA. THAT is the contracting agency that does the checkoff work. It is NOT the Policy/dues/membership division of NCBA. There are solid walls between the two organizations and the finances are strictly audited by outside professional auditors as well as USDA. When you can show us proof of ANY impropriety and/or use of checkoff dollars by the Policy/dues/membership division, I will grant that you have a point. Until that happens, I contend you are simply not telling the truth about this matter.

MRJ

 

[Jason]

Samething Happened Before Guys and Gals.Here is the guts laid out on this,you get to a point in retail where you are limited and there is no more marketing space (hook space) (shelf space like what Mc Cormick pulled in spices)left for the new comer on the scene.What happens is that a NEW STORE pops up and specializes in just ONE THING.
Lets take flowers for instances.How many stores do you see that just deal in FTC trade flowers anymore,Not many,But now you have small shops dealing in everything that pertains to flowers for every ocasion.

I can see thru this meat racket as Their is a group wholesaler that has no stocking fee that puts everybody's meat in one sale site or building and under cuts everybody like CostCo's,Walmart ,Public's,Kroger'sand so forth.Now the Customer has a reason to go there as all brands have space and the customer can buy the whole range of product from organaic,natural,goat,pheasant,venison,and baby beef and lamb and it might not have any imports unless their tested for CJD,BSE,and Avain FLU.

It could upset the apple cart like New flower shops.Their are some new shops that only handle Produce and they are catching on fast,and the customer can build a relationship with the OWNER.What happens is History repeats itself.

You are exactly right, Porker.

So now conman admits the market will take care of business that gets out of hand.

A new competitor will come in and kick their butt.

So why the concern about Tyson? If they get out of hand a new competitor will beat them.

Sounds like what rational posters here have been saying all along.

 

[PORKER]

Econ 101,You and I are on the same Page as this is Common Sense as producers are concerned about the amount of retail case space controlled by nationally branded meat companies vs. smaller or regional processors and "how much competition they can keep out by the amount they can control."
I can see thru this meat racket as Their is a group wholesaler that has no stocking fee that puts everybody's meat in one sale site or building and under cuts everybody like CostCo's,Walmart ,Public's,Kroger'sand so forth.Now the Customer has a reason to go there as all brands have space and the customer can buy the whole range of product from organaic,natural,goat,pheasant,venison,and baby beef and lamb and it might not have any imports unless their tested for CJD,BSE,and Avain FLU.


Food manufacturers and wholesalers often pay major chains for prime display space -- some retailers charge five-digit "slotting allowances" ( HOW about 6 DIGIT figures)to stock new products. Small producers fear retail consolidation and a move to branded, case-ready meat could threaten opportunities for producers to enter the retail market,but there is a way out.

The Status Quo has a wakeup call Coming and it woun't be Funny when we see Meat stores in every Gas Station like Subway done it.The biggies have moved away from their past use of the local supermarket..Even the drug stores sell milk ,bread, and meat.

 

[Econ101]

Samething Happened Before Guys and Gals.Here is the guts laid out on this,you get to a point in retail where you are limited and there is no more marketing space (hook space) (shelf space like what Mc Cormick pulled in spices)left for the new comer on the scene.What happens is that a NEW STORE pops up and specializes in just ONE THING.
Lets take flowers for instances.How many stores do you see that just deal in FTC trade flowers anymore,Not many,But now you have small shops dealing in everything that pertains to flowers for every ocasion.

I can see thru this meat racket as Their is a group wholesaler that has no stocking fee that puts everybody's meat in one sale site or building and under cuts everybody like CostCo's,Walmart ,Public's,Kroger'sand so forth.Now the Customer has a reason to go there as all brands have space and the customer can buy the whole range of product from organaic,natural,goat,pheasant,venison,and baby beef and lamb and it might not have any imports unless their tested for CJD,BSE,and Avain FLU.

It could upset the apple cart like New flower shops.Their are some new shops that only handle Produce and they are catching on fast,and the customer can build a relationship with the OWNER.What happens is History repeats itself.

You are exactly right, Porker.

So now conman admits the market will take care of business that gets out of hand.

A new competitor will come in and kick their butt.

So why the concern about Tyson? If they get out of hand a new competitor will beat them.

Sounds like what rational posters here have been saying all along.

Jason, I have time and time again told you that you are not smart enough even to paraphrase me.

How are new competitors going to compete with Tyson in beef when they own so much of the market share in beef, pork, and chicken and they employ market power to gain and maintain those positions? You speak for the aristocracy, Jason. I speak for the free market with rules against market power being used, as the wisdom of past legislators have learned is necessary and who passed that wisdom into laws. You speak for judges to have the power to overturn legislation for the benefit of oligarchs. I do not.

 

[PORKER]

Small producers fear retail consolidation and a move to branded, case-ready meats could threaten opportunities for producers to enter the retail market,but there is a way out.

Where is that local Locker???Tied up in FSIS rules that only pertain to the Big boys.

 

[Sandhusker]

Sandhusker is their any rules disallowing larger banks from offering better interest rates on loans or savings to garner more customers. Possibly trying to discourage other banks from coming to town?

No there isn't. There are rules on acquisitions of banks. If you are already in a market, you can't buy out your competition if it gives you over so much of the market. I don't know the specifics, but I do know that law exists.

I am very surprised :shock: that you would not have easy access to the specifics if you work in the buisness!

I do have easy access to the specifics.

 

[agman]

Econ 101,You and I are on the same Page as this is Common Sense as producers are concerned about the amount of retail case space controlled by nationally branded meat companies vs. smaller or regional processors and "how much competition they can keep out by the amount they can control."
I can see thru this meat racket as Their is a group wholesaler that has no stocking fee that puts everybody's meat in one sale site or building and under cuts everybody like CostCo's,Walmart ,Public's,Kroger'sand so forth.Now the Customer has a reason to go there as all brands have space and the customer can buy the whole range of product from organaic,natural,goat,pheasant,venison,and baby beef and lamb and it might not have any imports unless their tested for CJD,BSE,and Avain FLU.


Food manufacturers and wholesalers often pay major chains for prime display space -- some retailers charge five-digit "slotting allowances" ( HOW about 6 DIGIT figures)to stock new products. Small producers fear retail consolidation and a move to branded, case-ready meat could threaten opportunities for producers to enter the retail market,but there is a way out.

The Status Quo has a wakeup call Coming and it woun't be Funny when we see Meat stores in every Gas Station like Subway done it.The biggies have moved away from their past use of the local supermarket..Even the drug stores sell milk ,bread, and meat.

Porker, can you name any retailer who charges a stocking fee for the meat section?

 

[PORKER]

Case ready meats,Fresh Brands,Just checked with my son as he's at Corp. office.

 

[RobertMac]

Small producers fear retail consolidation and a move to branded, case-ready meats could threaten opportunities for producers to enter the retail market,but there is a way out.

Where is that local Locker???Tied up in FSIS rules that only pertain to the Big boys.

Porker, wasn't it after the implementation of HACCP that the packing industry began its consolidation?

 

[PORKER]

Yes HACCP, that change everything,as you were the recordkeeper and audit taker and the Gov. just came by if their was a problem.RobertMac ,you still got that packing plant for sale???Any Takers???

 

[RobertMac]

Yes HACCP, that change everything,as you were the recordkeeper and audit taker and the Gov. just came by if their was a problem.RobertMac ,you still got that packing plant for sale???Any Takers???

That's the way an FSIS inspector explained it to me...the plant employees monitored the HACCP protocol, the inspectors monitored the monitoring. HACCP favors large plants and is a larger burden to smaller plants. In many cases in smaller plants, it fixed a problem that didn't exist.

The plant is going to be taken over by a friend of mine(an ex-Marine) to ensure our ability to process and several others(business is growing, but don't tell anyone :wink: ).

Your food locker idea is right on target...it will grow out of the dramatic increase in farmer's markets. The insulating factor from the 'bigs' is locally produced product.

 

[mrj]

Small producers fear retail consolidation and a move to branded, case-ready meats could threaten opportunities for producers to enter the retail market,but there is a way out.

Where is that local Locker???Tied up in FSIS rules that only pertain to the Big boys.

Porker, wasn't it after the implementation of HACCP that the packing industry began its consolidation?

How many big packers were there when HACCP was implemented? I believe that was in the early '90's, or possibly late '80's.

Isn't the regulation on local lockers and very small packers that they must meet or exceed federal regulation? Isn't it more a problem that the little operators cannot ship interstate? And isn't that more likely to be because of opposition of just slightly bigger packers who ARE federally inspected not wanting the competition, than of big packers for whom the smallest ones don't even register as competition?

BTW, before HACCP, inspections were pretty well limited to "see and smell". I certainly prefer the written plans carried out to assure meat safety as well as the actual testing required under HACCP, and am very sure most other consumers do as well.

MRJ