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Why don,t we price our product ?

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Charlie1948

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I was setting here reading story after story same thing people complaining about this complaining about that.
Why don,t we get smart they are not to many of us left today.
We need to price our product .When we get all our expences then figure the cost of production plus a resonable profit.
That is called parety it was established around 1914 I think it use to be in the back page of Nebraska Farmer and several other magazines.Don,t see it any more.We could still be our own boss and sell when and where we wanted but at least we would never sell below cost of production.
Just a idea .
 
A

Anonymous

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Consumer: "Hmmm, I got $50 in my pocket, should I fill my tank with $2.78 gas or should I buy overpriced (from a consumer perspective) beef......I think I'll take the chicken and fill my truck."

That is the reality of the world we live in.


~SH~
 

PORKER

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We could still be our own boss and sell when and where we wanted but at least we would never sell below cost of production.
This happens to only a small portion of the ag population.
 

waterloo_boy

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we had exactly that in Canada not all that long ago, was called National Tripartite Program. It was a form of insurance, you payed a premium to be enrolled and were guarenteed "cost of production". Worked so well the "cow/calf sector never had a payout year and premiums were refunded when it was scrapped due to NAFTA. Feedlots could not lose money so there was an incentive to keep pens full, was the only time the "trickle down theory" seemed to work. Always wondered what the BSE impact would have been had this program remained in place.
 

Silver

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~SH~ said:
Consumer: "Hmmm, I got $50 in my pocket, should I fill my tank with $2.78 gas or should I buy overpriced (from a consumer perspective) beef......I think I'll take the chicken and fill my truck."

That is the reality of the world we live in.


~SH~

Personally, I would rather sell less cattle for more money. I don't feel as though it is my responsibility to raise beef at a loss in order to keep the chicken of Consumer X's plate. The reality of the world we live in is that successful businesses sell their product at a profit more often not. Not every product is sold on the open market at the whim of the consumer. I'm not claiming to know what the answer is, but even oil producing countries have a quota system to attempt to keep supply in proportion with demand.
 

CattleCo

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Consumer: "Hmmm, I got $50 in my pocket, should I fill my tank with $2.78 gas or should I buy overpriced (from a consumer perspective) beef......I think I'll take the chicken and fill my truck."
SH is in the real world..........the consumer may by macaroni and leave the meat case empty!! Oh, I forgot Agman is going to save the Industry with his charts and graphs! :roll: :roll: :roll:

Fuel cost will really play into cattle pricing now......if you live in certain parts of the country you will see a lot of price spread in feeders. The producer is going to pay the price in lower bids for high priced fuel.
 

Kato

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Boneless chicken breasts cost $7.05 a pound here. (That would be $5.81 U.S.)

Mind you, that chicken was raised by independent growers with a marketing board, not one large corporation. Chicken and dairy farmers are the only ones left who actually make a living here, mainly due to the marketing boards. These are the same marketing boards that are under constant pressure from American business interests to disband so the control can be handed out of the producers hands.

Maybe the cattle industry needs a marketing board???

That should get the discussion fired up! :shock:
 

mrj

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Charlie 1948, wouldn't we all have to have the same production costs for your theory to work? How would we differentiate for different qualities of cattle? We need to be paid for the value of our cattle, and some are and some are not. Maybe we need to spend more time MARKETING our cattle.

A socialized one-size-fits-all system of cattle pricing just doesn't seem workable or even fair, IMO.

MRJ
 

Murgen

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Maybe the cattle industry needs a marketing board???

Wasn't that purposed in the 80's, but we individualistic beef farmers, said "nope, won't work, don't want any part of that. We want to get paid for the quality we produce and not our neighbors commodity beef."

Let us be paid for what we produce, an old mantra, now, the US wants to label everything as "the same"

GO FIGURE
 

YoungFarmer

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Maybe the cattle industry needs a marketing board???

That should get the discussion fired up! :shock:[/quote]

Are you suggesting Canada should go to a Quota supply managed system like dairy and poultry. That would mean we would all have to cut back our production severely to match supply with domestic demand. Would the public be willing to pay a higher price for beef knowing it would be supporting the family farm like dairy farmers. As a consumer I have no trouble paying higher prices for milk than compared to what Americans pay for their milk knowing my neighbor is able to make a fair living at it. Instead of competing against each other we could form our own "oil cartel".
 

Northern Rancher

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As amn established producer supply management would be like winning the lottery-not because I agree with it but because I would start out with quota-it is reprehensible the price young farmers in the milk and feathers business have to pay for basically the right to start.We'd definately see the end of any young ranchers wanting to start up-I have relatives in a supply managed businesss and it's not as rosy as it appears to us on the outside-in fact the most money they make is the portion of their quota they cash rent out to a large corporate farm.
 

Murgen

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NR. don't forget that it easier to get money loaned to you when you have a steady and expected income. I've known dairy and poultry producers to get loans, strictly on their ability to pay.

You won't see that in a system that is not supply managed!

Are you suggesting Canada should go to a Quota supply managed system like dairy and poultry. That would mean we would all have to cut back our production severely to match supply with domestic demand. Would the public be willing to pay a higher price for beef knowing it would be supporting the family farm like dairy farmers. As a consumer I have no trouble paying higher prices for milk than compared to what Americans pay for their milk knowing my neighbor is able to make a fair living at it. Instead of competing against each other we could form our own "oil cartel".

We wouldn't have to reduce production all at once, just have a long term plan to reduce overall numbers in the long term. a "profit by culling" solution or a "income by demand production scheme" Would it be work , yep, but it's doable! Is it socialist, yep, a little, but so what!
 

Northern Rancher

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Every loan I've ever gotten was based strictly on my ability to pay-alot of dairy guys are saying supply management is on the way out for them.
 

Murgen

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Yet to be seen if it is on the way out, even if it is, they sure do have alot of equity to work with.
 

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