The US cattle herd is at a 75-year low. Ranchers finally started making money. The packers' response? Close plants and import 300,000 tons of foreign beef.
As Barn Talk laid out this week, Wall Street firms like BlackRock and State Street control the packer boards. When profits dip, management gets replaced. The only thing that matters is the next quarter's return.
So packers shutter smaller plants. Domestic supply tightens. Hamburger gets expensive in an election year. Washington panics and opens the door to 300,000 tons of imported trim.
That imported trim keeps the grinders running for the three or four remaining packers. And the rancher? Gets a smaller bid and a clear signal not to expand.
This isn't a fix. It's a band-aid that protects packer margins and punishes the producer. The real solution takes at least six years, two full calf cycles. But government runs on two-year election cycles.
That's why nothing changes. Direct from ranch cuts out the middleman's game entirely.
Your rancher,
Jason Hanley | 208-714-0478
@cattleguy92 Amen. Someone should take him through the dollars and cents of what it takes to run a cow-calf operation. The margins are so thin that even in the best of times it is hard to make ANY profit. Flooding the market with subpar, foreign beef is not the answer.
Yes, we are past the point of no return.
When debt service payments squeeze out spending, it is like plaque in the circulatory system squeezing out the flow of blood. It is the same kind of thing, and it can be measured. We are seeing that happen right now.
There is also a supply and demand issue. A budget deficit means that debt has to be sold. We can see this happening in the bond market—bonds have been a bad investment, and there is pressure on interest rates and borrowing.
This dynamic is happening, but people are treating it like it hasn't happened before. They don't understand that, just like plaque in the arteries, the debt builds up and they have that exposure.
@CathsAgainstJws So-called “Christian Zionists” will have blood on their hands unless they repent and return to the Gospel. There are many examples in the Gospels, but citing just one reference, why did Jesus curse the fig tree in Mk 11:12-14 and who is the fig tree?
At least 30 Christians were reportedly killed in an overnight attack in Southern Kaduna, Nigeria, forcing families to flee once again. Communities deserve protection, not repeated violence and displacement. We stand in solidarity with those suffering and pray for peace.
Read more here: https://t.co/hXmVw55oGh
@msirilla1@EricRSammons Anyone who struggles with nihilism in any of its various forms should listen to Dr. S’ testimony on “Stunned by Scripture”. It is an amazing story re-affirming the Grace of God’s love and mercy by a happy soldier for Christ. Pax !