The low numbers/high prices is a fundamental thing. Simple supply/demand. Its going to take time to rebuild the herd. 4 years minimum, assuming these prices stay up. If they dont, there's no way the US cattle herd will recover. The average age of producers is 63+ years old. Many are selling out and have no one to continue their businesses.
As for consumer prices, there are 4 packers that control 85% of the entire beef industry. And a similar situation for retailers. These people are making all of the money. Its a HUGE problem. They need to be broken up.
I am a Trump guy thru and thru, but hes really hurt producers wallet the last week with his comments. He just doesnt understand the complexities involved. I hope he will become informed. Because cattle production is close to a point of no return in my humble opinion. 9 years out of 10 cattle are sold for prices below the vost of production at prices SET BY THE PACKERS. There is no way any business can survive that. Most times farms survive due to off farm income. Its quite sad.
Best thing we can do is enforce anti-trust laws. They own most the food production in the country.
The low numbers/high prices is a fundamental thing. Simple supply/demand. Its going to take time to rebuild the herd. 4 years minimum, assuming these prices stay up. If they dont, there's no way the US cattle herd will recover. The average age of producers is 63+ years old. Many are selling out and have no one to continue their businesses.
As for consumer prices, there are 4 packers that control 85% of the entire beef industry. And a similar situation for retailers. These people are making all of the money. Its a HUGE problem. They need to be broken up.
I am a Trump guy thru and thru, but hes really hurt producers wallet the last week with his comments. He just doesnt understand the complexities involved. I hope he will become informed. Because cattle production is close to a point of no return in my humble opinion. 9 years out of 10 cattle are sold for prices below the vost of production. There is no way any business can survive that. Most times farms survive due to off farm income. Its quite sad.
Best thing we can do is enforce anti-trust laws. They own most the food production in the country.