DiamondSCattleCo
Well-known member
Anyone remember a couple years back when I first joined, I did a little balance sheet showing packer profits? I got beat up pretty bad by the "people that know", stating that I was obviously off my rocker when I came up with the gross margin that packers had to be getting from each carcass.
To come to my point, I just got done reading a Cattleman's article in which they had an official JBS announcement of the success of their cost cutting measures they had implemented since taking over Swift. In this article, JBS states that they had reduced TOTAL cost of processing from $212 (or $220, magazines not handy right now) to $164 per animal in the US. By TOTAL cost, I gather they mean cutting, wrapping, SRM disposal, etc etc. In other words, EVERYTHING required to make that animal ready for sale.
Now, for you packer lovers, I challenge you to work the numbers, using JBS's OWN processing costs, and show me how they only manage to make 10 bucks/head profit (or whatever bullshit number you people were trying to sell us).
Rod
To come to my point, I just got done reading a Cattleman's article in which they had an official JBS announcement of the success of their cost cutting measures they had implemented since taking over Swift. In this article, JBS states that they had reduced TOTAL cost of processing from $212 (or $220, magazines not handy right now) to $164 per animal in the US. By TOTAL cost, I gather they mean cutting, wrapping, SRM disposal, etc etc. In other words, EVERYTHING required to make that animal ready for sale.
Now, for you packer lovers, I challenge you to work the numbers, using JBS's OWN processing costs, and show me how they only manage to make 10 bucks/head profit (or whatever bullshit number you people were trying to sell us).
Rod