What's happening???

[justintime]

A friend of mine reported on Facebook this morning, that 9 years ago today, they sold their calves and averaged over $1000 per head, right off the cow. I remember that year well, and it was one of the few times in recent history, when the commercial man had a little jingle in their pockets. I remember selling my commercial calves that fall, and the cheque I got at the auction mart. A person could actually dream a little about the future, and  people in other areas of agriculture would tell us that we were " lucky" to be in the cattle business. When I was told this, I usually said that there wasn't much luck involved, but there was a lot of very hard work.

When I think of that year, I will always remember two late born bull calves that I sold that fall. When I sorted my calves, I did not know what to do with these two calves, as I was almost embarrassed to haul these two little Charolais fur balls to town. I decided I would put them in a pen in the barn and feed them for a few months. While hauling the calves to town, I decided that if one of these calves was to die, I would be wishing I had sold them. When I loaded the next load to go to the auction mart, the two little fur balls were on the trailer. When I got my returns I was completely overwhelmed with the results. Not only did the rest of the calves sell well, but the two little white calves I was embarrassed to sell, sold for $2.48 / lb. They weighed 310 lb average which returned $768.80 each.

I am really concerned that many of our commercial producers in this area are talking about selling their cows this fall. Most are saying they have held on as long as they can, and are fed up with low returns. I really don't understand why each and every year, something else drives prices down. Cow herd numbers in Canada and USA are at below 1950 numbers. I know that the recession has had an affect on prices, as have the low prices of pork, but it seems to me that something is really running a muck.The population of our two countries is much higher than 1950, and it seems to me that families are still eating... and eating lots of hamburgers. The price of steaks in the restaurants has not dropped, and I recently talked to a restaurant owner about this, and he told me that his steak sales are higher than ever. I am usually a very optimistic person, but this story is getting very old!!!  There will always be a cattle business, but I am beginning to think it will never be the same again. What is happening? What is causing many of our younger producers to have to sell out because they cannot survive? Will we ever see strong cattle prices where people can actually pay their bills, replace some facilities, feed their families and have some optimism again? What do you think?

 

[the angus111]

Grant, in the U.S and IMO the government uses animal ag. as a trade tool with Brazil,Australia and Mexico.In return the rancher or farmer in the U.S suffers.I am sure its that way in Canada.Throw Japan in there too.I also think animal rights and the EPA dont help matters.Young people are realizing they can go to the city,sit behind a desk,make a ton of money.They dont have to struggle like their parents.I am getting off subject.rusty

 

[ROAD WARRIOR]

Grant, in the U.S and IMO the government uses animal ag. as a trade tool with Brazil,Australia and Mexico.In return the rancher or farmer in the U.S suffers.I am sure its that way in Canada.Throw Japan in there too.I also think animal rights and the EPA dont help matters.Young people are realizing they can go to the city,sit behind a desk,make a ton of money.They dont have to struggle like their parents.I am getting off subject.rusty

This is very true. It is sad that we can't compete in our own country with the imported meats from other countries. We have been sold out by our government in their trade agreements. How else could the fast food industry afford to buy "beef" from foriegn countries with a readily available product already here. RW

 

[ATOZ]

I was told that all McDonalds hambuger is bought out of the USA. Anybody else heard that?

 

[farmboy]

thats a rumor. its been on the internet for years.

 

[Dyer Show cattle]

the mcdonalds email floating around is partly true and false, read here

http://www.snopes.com/politics/business/mcdbeef.asp

 

[justintime]

Due to am internet "urban legend" that has circulated for the past few years, stating that Mc Donald's buys all it's beef outside N America, McDonald's have declared that it is their policy to only secure their beef from the country they are doing business in. This means that in the US, all beef used in McDonalds restuarants comes from US suppliers, in Canada, from Canadian sources, etc. I believe this to be true.

When I visited the Royal Highland show in Scotland a year ago, I was very impressed with how McDonalds promoted Scottish beef and it's producers. Their pavilion and display was huge, and there were signs all over promoting the fact that they supported Scottish agriculture and how important it was to the Scottish economy. They had numerous well dressed college students talking with the public, and I listened to several of them, and the message they were giving was excellent... and the right message for the urban public to hear. I was very impressed and my opinion of the  McDonald's corporation went way up. I just wish they would do some of the same promotion here. Maybe they would if someone were to ask them to promote the partnership between the producer producing good healthy food, and the importance it had on their own  business.

 

[chiangus]

Due to am internet "urban legend" that has circulated for the past few years, stating that Mc Donald's buys all it's beef outside N America, McDonald's have declared that it is their policy to only secure their beef from the country they are doing business in. This means that in the US, all beef used in McDonalds restuarants comes from US suppliers, in Canada, from Canadian sources, etc. I believe this to be true.

When I visited the Royal Highland show in Scotland a year ago, I was very impressed with how McDonalds promoted Scottish beef and it's producers. Their pavilion and display was huge, and there were signs all over promoting the fact that they supported Scottish agriculture and how important it was to the Scottish economy. They had numerous well dressed college students talking with the public, and I listened to several of them, and the message they were giving was excellent... and the right message for the urban public to hear. I was very impressed and my opinion of the  McDonald's corporation went way up. I just wish they would do some of the same promotion here. Maybe they would if someone were to ask them to promote the partnership between the producer producing good healthy food, and the importance it had on their own  business.

they use the buzzword "Angus burgers", but how about American Made Hamburgers raised in the US and Canada from Farmers and Cattle Producers

 

[aj]

I think local corn prices could hit the 2 dollar level this winter. That should be good for cattle.jmo

 

[knabe]

We have been sold out by our government in their trade agreements. How else could the fast food industry afford to buy "beef" from foriegn countries with a readily available product already here. RW

true true true true.  companies should be able to do their OWN source verification, BSE testing etc and quit giving the government a monopoly on setting price.

every time the government gets involved in price, one side of the transaction will make LESS money than they would have had the government not got involved and stay with minimal, but necessary regulation.  every president since teddy has screwed this up, especially FDR.  instead of adding to the "adjustments", government should get rid of them.

it's really as simple as the housing bubble.  we get a tax exemption for property tax.  up goes the value of the house by the exemption.  we get an exemption for interest on the loan.  up goes the price of the house by that amount. and on and on, making it MORE difficult for entry into a market.  the side effect of this is property tax revenue to the government, but people just can't seem to put two and two together.  if entry points weren't so high and delayed gratification were rewarded, the world would be more equal.

but no.  no one pays for the higher entry point at the ballot box.

 

[Hofstatter Farms]

i know this is completely off topic, but has anybody else heard the rumor of the US gov charging a tax per head of cattle that you own. something about the methane gas released or something was killing the ozone, i don't remember exactly  i was in a hurry when i read it.

 

[Dyer Show cattle]

I heard that as well, they were wanting to charge up to 100 dollars per head. I know the Cattle assoc was fighting pretty hard to block it but I never heard the outcome.

 

[Telos]

Why is the supplier (commercial operator) getting the raunchy deal? I agree something is running a muck. Beef prices are at an all time high in the stores. Feed prices aren't too bad. It really makes me crazy to see undeserving entities capitalizing. This livestock market seems to be just like Wall Streets stock market. I understand the very groups we bailed out are back to getting the multi million dollars in bonuses again. It has become nothing more than a flaud system full of greed.

 

[the angus111]

Telos,the farmer and rancher has always been the whipping dog of the govt.maybe its time to take the tractors to washington, like in the early 80's.it amazes me also that AIG may not have to pay us back. rusty

 

[the angus111]

dairy beef is also driving the market.rusty

 

[knabe]

Why is the supplier (commercial operator) getting the raunchy deal? I agr

if counter prices are high and producer prices low, eliminate as much as possible in between.  no reason to price direct sales at fat cattle prices plus slaughter expenses.

 

[justintime]

I read an article a few months ago that was comparing the price of a steer sold to a packer, and the price of a steer if it was purchased in pieces from the meat counter in a local grocery store.I don't remember the exact numbers but I do remember the article showed that there was more than $2000 mark-up between the producer and the consumer. This does not seem right, The producer, who does probably 90+% of the work, gets the smallest return. The producer is also at the mercy of the packers as he has no say as to what price he will receive for his product. Most cow- calf producers sell their calves to the feedlot buyer,and are at the mercy of the markets as well. We all know that many of the feedlots take mind boggling losses from time to time, the packers are always crying poverty, and the retail stores say that beef is not a profit driven product for them. This makes no sense. To me, someone is lying. Both the initial producer and the consumer are getting raped ... and it is legal! Something has to change.

 

[aj]

I had a farm management meeting today.(extension farm management tax organization in Kansas). Their data showed last year that the best operators lost 200 some dollars per cow last year on the commercial side. Some operators lost as much as 350$ cow. The poor economy is killing demand. Protein is high, mineral,machinery etc. They thought pasture rent should be going down as a result but it hasn't happened yet.