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Anonymous
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Poor margins prompt packers to cut production
Three of the nation's four largest beef packers have cut production due to soft demand and high cattle prices. Tyson Foods announced Tuesday it will cut production to 35 to 40 hours per week at its beef plants, which will reduce slaughter by about 12,000 cattle per week. National Beef Packing Co., the nation’s fourth largest packer, says it will cut operating hours to 37 hours from a normal weekly schedule of 40 to 48 hours. Swift & Co., the nation's second largest packer, says it will reduce production hours to 32 to 37 hours per week at three of its four U.S. plants.
Packers have found tight supplies of cattle, softer domestic beef demand and continued limited access to export markets. Those conditions are likely to persist for several months, according to John Nalivka, president of Sterling Marketing, Vale, Ore. Nalivka said packers lost an average of $33.58 on every animal they processed in September, and projects October losses of $19.28 per head. In fact, Nalivka told Drovers he expects margins to remain in the red until next April. Recently updated projections by Sterling Marketing show packer losses will average $29 per head in November, $24 per head in December, $16 per head in January, $40 per head in February and $9 per head in March. Nalivka says he projects a profit of about $17 per head for packers in April, which could be the first in eight months. — Greg Henderson, Drovers editor
Wonder if the packers will sue producers for market manipulation since producers refuse to sell cattle at prices that are profitable to packers??? LOL!
Where's the "WAAAAAAAAAAAAAAHHHHH" cries from the packer blamers now???
Feeder cattle prices are falling AND PACKER MARGINS ARE IN THE RED????
How can that be? According to the cattle industry's "SO CALLED" experts (read that as LMA self promoters), when feeder cattle prices are falling its a result of packer concentration or captive supplies??? But, but, but feeder calf prices have fallen and PACKER MARGINS ARE IN THE RED????
How can this be????
Too bad the packer blamers haven't invested in a packing company so they could realize these Callicrate claimed "HUGE PACKER PROFITS" themselves. They deserve to learn that economic lesson.
I suppose "CONMAN THE LYING KING" and "LITTLE SANDCHESKA" have some packer blaming spin to justify packer losses? Oh, yeh, I almost forgot, they are just doctoring their packerwork to APPEAR to be losing money and cutting shifts to create a packer diversion?? Hahaha!
Packer blamers...........sheeesh!
~SH~