One of the biggest fear mongering topics is the threat of vertical integration.
It is a fact that vertical integration can come from the bottom up or from the top down.
With that in mind, which side of the industry do you suppose the most equity lies?
Do you think there is more equity tied up in the packing and retail sector of the cattle/beef industry or do you think there is more equity tied up in the livestock side of the industry in land, livestock and machinery?
Do you think it is easier for the ranchers to invest in the packing and retail sectors or the retail and packer sectors to invest in the ranching sector?
You always hear the comparison to large scale pork and poulty farms. Can someone provide me with a legitimate example of where packers and retailers are investing in the land, livestock, and machinery necessary to run a large scale cattle operation?
Hmmmm???
Just a simple question!
Now don't throw out the argument that the packers and retailers can control the industry without owning the land, livestock, and machinery when so many producers are already feeding cattle to fat, processing the beef, and selling the beef. How does the large corporate packers and retailers have a strangle hold on them?
Here's another question, what happens to the salebarns when producers control their product from pasture to plate? Perhaps that would explain why so many salebarn managers have taken it upon themselves to become spokespersons for the cattle industry. Not saying salebarns don't provide a valuable service because they do. I'm simply saying, they have an inherant bias and financial stake in the future of this industry and that bias screams.
~SH~