RobertMac
Well-known member
~SH~ said:The reason to take MORE control of our industry is because nobody has more incentive to give consumers a better product than the producer does because the rest of the industry operates on a margin.
The packer pays for cattle, according to what he gets for boxed beef.
The retailer pays the processor according to what he gets for retail beef.
The retailers do not specialize in selling JUST BEEF so they don't have as much incentive to create new value added products as the producer does.
There is no greater incentive to improve your product then when you own that product from pasture to plate. The problem you are faced with is trying to process that beef as efficiently as the large packer does and find a market for every part of the carcass like they have?
The solution?
Allow processors to do what they do best by custom killing producer cattle so producers own the cattle going in and the beef coming out. The beauty of that is that only the progressive producers would work with the packers because the conspiracy theorists can't trust them. LOL! I love the irony in that.
There is nothing the packers would like more than a consistant supply of cattle and a custom kill price that guaranteed them a profit.
The solution is for the segments of our industry to work together, NOT FILE CONSPIRACY THEORY SUITS AGAINST EACHOTHER.
Who would fight this process the most? YOU GUESSED IT, THE LMA WHO DRIVES R-CULT.
"HOW MUCH YA GONNA GIVE FOR EM BOYS" (traditionalism)
~SH~
???????????????????????RobertMac said:The other point of question is processing...Tyson, ConAgra, Cargill, and Smithfield control somewhere over 80% of processing capacity. Producers orgs will have to have processing capacity...the problem is these packers aren't in the processing business, they are in the food business...the global food business. They aren't going to help a competitor take part of their business by custom processing for them even if there is more money in custom processing.