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Originally Posted by SamOlson
It is rather frustrating to see sky high beef retail prices when the producer's market is flat.

I forget what current packer profit margins are but it's sickening.



Figure I have been hearing is 400%.

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Originally Posted by SamOlson
It is rather frustrating to see sky high beef retail prices when the producer's market is flat.

I forget what current packer profit margins are but it's sickening.



Figure I have been hearing is 400%.
Originally Posted by Jim_Conrad
Yes. USDA inspection is a terrible burden to overcome for the small processor and producer.

The big packers love all the rules and regs....because they purchased them.



Government regulation and insurance requirements are the main reason most businesses go under or never start up.

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Originally Posted by 45_100
Originally Posted by SamOlson
It is rather frustrating to see sky high beef retail prices when the producer's market is flat.

I forget what current packer profit margins are but it's sickening.



Figure I have been hearing is 400%.



Last article I read, said the packer is selling a prime steer for around $3200. The farmers was getting about $1800 for the animal. The article said the packer would historically make about $400 per head for processing the animal, not $1400.

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Originally Posted by keystoneben
Originally Posted by 45_100
Originally Posted by SamOlson
It is rather frustrating to see sky high beef retail prices when the producer's market is flat.

I forget what current packer profit margins are but it's sickening.



Figure I have been hearing is 400%.



Last article I read, said the packer is selling a prime steer for around $3200. The farmers was getting about $1800 for the animal. The article said the packer would historically make about $400 per head for processing the animal, not $1400.



That's close enough for this kind of work, with your figures.

Local packer charges about $300.

Here in Texas, we have state meat inspection for custom kill packing companies. Problem is, USDA won't let you sell the packaged meat, either wholesale or retail.

If states would pass legislation that state raised meat could be slaughtered, state inspected, and sold within the state, that would jerk a knot in the tails of the meat mafia.


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Originally Posted by Jim_Conrad
Yes. USDA inspection is a terrible burden to overcome for the small processor and producer.

The big packers love all the rules and regs....because they purchased them.




One of the local processors(nonusda) told me that he applied for some grants to help get him usda complaint. He said the government is recognizing the need for USDA shops.

The USDA shops around here, are booked out upwards of 1-2 years. One of the most respected shops in the area is forsale because the owners went to work for the USDA as inspectors.

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Originally Posted by rockinbbar
Originally Posted by keystoneben
Originally Posted by 45_100
Originally Posted by SamOlson
It is rather frustrating to see sky high beef retail prices when the producer's market is flat.

I forget what current packer profit margins are but it's sickening.



Figure I have been hearing is 400%.



Last article I read, said the packer is selling a prime steer for around $3200. The farmers was getting about $1800 for the animal. The article said the packer would historically make about $400 per head for processing the animal, not $1400.



That's close enough for this kind of work, with your figures.

Local packer charges about $300.

Here in Texas, we have state meat inspection for custom kill packing companies. Problem is, USDA won't let you sell the packaged meat, either wholesale or retail.

If states would pass legislation that state raised meat could be slaughtered, state inspected, and sold within the state, that would jerk a knot in the tails of the meat mafia.


I'm talking about the big guys Cargill, JBS, etc. The local shops around here are in the $.70-1.00 per pound range

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Originally Posted by keystoneben
Originally Posted by rockinbbar
Originally Posted by keystoneben
Originally Posted by 45_100
Originally Posted by SamOlson
It is rather frustrating to see sky high beef retail prices when the producer's market is flat.

I forget what current packer profit margins are but it's sickening.



Figure I have been hearing is 400%.



Last article I read, said the packer is selling a prime steer for around $3200. The farmers was getting about $1800 for the animal. The article said the packer would historically make about $400 per head for processing the animal, not $1400.



That's close enough for this kind of work, with your figures.

Local packer charges about $300.

Here in Texas, we have state meat inspection for custom kill packing companies. Problem is, USDA won't let you sell the packaged meat, either wholesale or retail.

If states would pass legislation that state raised meat could be slaughtered, state inspected, and sold within the state, that would jerk a knot in the tails of the meat mafia.


I'm talking about the big guys Cargill, JBS, etc. The local shops around here are in the $.70-1.00 per pound range


The local packers here charge the $300 for killing and hanging on the rail.

They charge 75-80 cents a pound for complete processing. Cut, wrapped and frozen.

The big packers don't do that. They usually sell quarters or halves.

My family owned a packing company when I was growing up. I grew up cutting meat, started on the kill floor when I was 12.

We could custom kill all we wanted, but customers wanting to buy a half a beef, cut wrapped and frozen had to place an order, and we'd get a delivery from the big packer once a week.

That big packer beef was all we could process and sell retail. Sold a lot to restaurants and supermarkets too.


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Originally Posted by Jim_Conrad
Originally Posted by dale06
I’ve seen farmer owned grain elevators, soybean and corn processing plants that failed miserably. Maybe this will work, but a1500 head a day processing plant is one sixth or less than some of the big beef processing plants. Volume drives efficiency.
If they’re asking for investors, I’ll run from it.


Efficiency isn't everything. That's how you got mechanically separated chicken and pink slime.


I sold fat beef for 4.50. The small processor cut it up and the customer picked it up.


We all made a little money.



I hope this endeavor succeeds. But I'm pessimistic.

First job I had out of grad school was peddling catfish for a startup processor in Southern Texas. Now, Texas consumes 40% of the catfish in the country, has a longer growing season which makes each pond 20% more productive, so it stood to reason in my naive economist mind that I was getting in on the ground floor of a great opportunity.

The big boys in MS, AL and AR simply outbid us on every contract and customer we went after. I'll never forget the HEB buyer beating us up on price, size spread and delivery times, saying "but XXXX can do it..". Sure they could. HEB was more than 50% of our sales, and 2% of XXXX sales. They could afford to thump us in one market, never showed up on their bottom line.

Took three years for the thing to go dead nuts broke.

If these guys want to succeed, they better have a big user, like a Costco, or even a Whole Foods, in their pocket for a large majority of their sales, or the ADM's and Cargills will own them before the decade is half done.


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There is a local guy who raises beef, and does the butchering.

$3.25/lb swinging.
Covers cut, vac seal, quick freeze.
Was gonna buy a half, but our freezers are full, and deer season is just
getting going.


One of the few times buying from a farmer/market works well here.
Most try to screw you blind with the superiority of their product.
Direct sales, often cash, and they want quite a bit more than store prices.

This guy is doing some work, investing a bit, but doing better
than $.90/lb on the hoof. Minus auction fees and hauling.

He does better, the buyer does better.
The big guys get cut out, maybe the tax man gets stiffed?
Now that's a thing of beauty.


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Originally Posted by Dutch
Originally Posted by Jim_Conrad
Originally Posted by dale06
I’ve seen farmer owned grain elevators, soybean and corn processing plants that failed miserably. Maybe this will work, but a1500 head a day processing plant is one sixth or less than some of the big beef processing plants. Volume drives efficiency.
If they’re asking for investors, I’ll run from it.


Efficiency isn't everything. That's how you got mechanically separated chicken and pink slime.


I sold fat beef for 4.50. The small processor cut it up and the customer picked it up.


We all made a little money.



I hope this endeavor succeeds. But I'm pessimistic.

First job I had out of grad school was peddling catfish for a startup processor in Southern Texas. Now, Texas consumes 40% of the catfish in the country, has a longer growing season which makes each pond 20% more productive, so it stood to reason in my naive economist mind that I was getting in on the ground floor of a great opportunity.

The big boys in MS, AL and AR simply outbid us on every contract and customer we went after. I'll never forget the HEB buyer beating us up on price, size spread and delivery times, saying "but XXXX can do it..". Sure they could. HEB was more than 50% of our sales, and 2% of XXXX sales. They could afford to thump us in one market, never showed up on their bottom line.

Took three years for the thing to go dead nuts broke.

If these guys want to succeed, they better have a big user, like a Costco, or even a Whole Foods, in their pocket for a large majority of their sales, or the ADM's and Cargills will own them before the decade is half done.


I suppose that's why Gabe Brown is struggling so bad.....


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Too much federal government is always the problem. No reason states shouldn’t help themselves (their citizens) out by making it as easy as possible to have local farm to table. I’d love to see some of the “Free” states start to pass laws that assist the local growers and producers. Lots of Farm stands in my neck of the woods. Shockingly enough every local grocery store imports 100% of its fruits and vegetables during the local growing season. Go to the store in august and the tomatoes are from California. We grow the best tomatoes in the country and the local producers can’t even get a spot in the store. It’s silly. I feel bad for you ranchers. I’m lucky enough to have a butcher that purchases local beef so in a small way, I’m helping out the local economy and the meat is way better than anything I can get in a local grocery store.

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“The Biden Administration announced last month that the United States Department of Agriculture (USDA) will provide $1.4 billion to smaller meat producers hurt by rising meat prices during the pandemic.“

Another tax payer funded bailout…..


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I don't understand the quote.


Smaller meat producers hurt by rising meat prices?

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Not too many decades ago every town had a local meat packing plant and meat locker. Now very few are left. Onerous USDA regulations pushed by the big meat packers put them out of business. Same thing is being done to local banks by the big banks. Legal fees and compliance is tough when you're up against well connected big business. We can thank both political parties.


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Used to be several small packing plants here
close where you could buy a big chunk of beef
dirt cheap and a bucket of blood to make catfish
bait with

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Originally Posted by SamOlson
I don't understand the quote.


Smaller meat producers hurt by rising meat prices?


“The Biden Administration announced last month that the United States Department of Agriculture (USDA) will provide $1.4 billion to….

If that same sentence ended in……to provide $1.4 billion of taxpayer money to GM or Tesla or “Green Energy” or virtually any other private industry there would be a hell of a lot more indignation here.

I guess welfare is ok as long as it goes to the people or groups of people we like. 😉


�Politicians are the lowest form of life on earth. Liberal Democrats are the lowest form of politician.� �General George S. Patton, Jr.

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All I'm wondering is how producers are hurt by rising prices.


I am not hurt, just missing out.


No subsidy needed but I'll take it. I work for my welfare damnit...lol

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Originally Posted by AcesNeights
Originally Posted by SamOlson
I don't understand the quote.


Smaller meat producers hurt by rising meat prices?


“The Biden Administration announced last month that the United States Department of Agriculture (USDA) will provide $1.4 billion to….

If that same sentence ended in……to provide $1.4 billion of taxpayer money to GM or Tesla or “Green Energy” or virtually any other private industry there would be a hell of a lot more indignation here.

I guess welfare is ok as long as it goes to the people or groups of people we like. 😉

I like steak a lot more than an electric car

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How many times now have we tried to get the govt to look into/break up the packing house monopoly? Only to be brushed off and told there's no issue?

Typical, (govt)throw some money at it and hope it goes away...

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