I can foresee a profit sharing table where processing plant would be charged with negotiating prices with retailers.
Ranchers would be paid by the pound and quality of meat on delivery of cattle. And will receive a percentage (residual payment/monthly) based on negotiated price and profits above and beyond what rancher has already been paid on date of delivery.
Processing plant would keep a pre-determined percentage of profits as a reward and incentive to continue to drive the best price for rancher.
Processing plant board and directors would be chosen by ranchers based on votes. Each ranchers votes would be derived from pounds of meat contributed or delivered. Example: 100k pounds contributed /10 = 10k votes (so numbers dont get rediculous). Mandatory vote every year with a clause for every 6 months when board is underperforming expected or projected profits.
Rancher pay/profit table may be divided up into a few regions with adjustments up or down based on that regions operating costs. Things like feed, land, shelter and water costs etc. Table would be adjusted on a yearly basis depending on projected regional future operating costs.
No doubt things are missing and someone will find an Achilles heal in there somewhere but it may be a start?
Many years ago we had a "Locker Plant" where you rented a freezer locker.
You sent your cattle in one end and it ended up as frozen butcher packages on the other end, in your locker. I can't see this as costing $300 million though. Maybe they have a much larger scale in mind.
I first heard of ranchers efforts for an independent processing planta year or so ago from a well known national AM radio and TV host that happens to live in North Texas and has a ranch in a state up north.
He was able to breakdown the big four sham. The big four has every bit of the market cornered. Transportation to the plant, processing, transportation to retailers to well entrenched and loyal relationships with major retailers. I suspect the 300M price tag includes not only a massive plant but all the support pieces. No doubt that price tag is massive but may also have a war chest reserve built in since they will come at them with everything they have. It's all or nothing for the big four and they will respond as such.
I can confirm that meat packers are screwing the ranchers.
I can foresee a profit sharing table where processing plant would be charged with negotiating prices with retailers.
Ranchers would be paid by the pound and quality of meat on delivery of cattle. And will receive a percentage (residual payment/monthly) based on negotiated price and profits above and beyond what rancher has already been paid on date of delivery.
Processing plant would keep a pre-determined percentage of profits as a reward and incentive to continue to drive the best price for rancher.
Processing plant board and directors would be chosen by ranchers based on votes. Each ranchers votes would be derived from pounds of meat contributed or delivered. Example: 100k pounds contributed /10 = 10k votes (so numbers dont get rediculous). Mandatory vote every year with a clause for every 6 months when board is underperforming expected or projected profits.
Rancher pay/profit table may be divided up into a few regions with adjustments up or down based on that regions operating costs. Things like feed, land, shelter and water costs etc. Table would be adjusted on a yearly basis depending on projected regional future operating costs.
No doubt things are missing and someone will find an Achilles heal in there somewhere but it may be a start?
Many years ago we had a "Locker Plant" where you rented a freezer locker.
You sent your cattle in one end and it ended up as frozen butcher packages on the other end, in your locker. I can't see this as costing $300 million though. Maybe they have a much larger scale in mind.
I first heard of ranchers efforts for an independent processing planta year or so ago from a well known national AM radio and TV host that happens to live in North Texas and has a ranch in a state up north.
He was able to breakdown the big four sham. The big four has every bit of the market cornered. Transportation to the plant, processing, transportation to retailers to well entrenched and loyal relationships with major retailers. I suspect the 300M price tag includes not only a massive plant but all the support pieces. No doubt that price tag is massive but may also have a war chest reserve built in since they will come at them with everything they have. It's all or nothing for the big four and they will respond as such.