Packers are our allies?

[Andy]

Mike:"are you saying the bigger, more efficient packers don't necessarily pay more?" Mike that is a loaded question, there are a number of bigger more efficient plants and they all compete for the same cattle and there prices reflect that. I can't say if they are paying more than the smaller less efficient plants or not, but i do know that the smaller plants are losing money right now.
Mike:" Wouldn't "efficiency" be on the "production side?" Efficiency would be on the production side of the equation. When the plant looks at efficiency they look at the efficiency of the whole plant, and when a plant is more effiecent they will make more money total,if everything else is equal, but not always will they make more money on an idividual carcasses. Usaully makeing more money per carcass translates into more total profit but not always.

 

[Jinglebob]

Mike:" Wouldn't "efficiency" be on the "production side?"

Andy-"Efficiency would be on the production side of the equation. When the plant looks at efficiency they look at the efficiency of the whole plant, and when a plant is more effiecent they will make more money total,if everything else is equal, but not always will they make more money on an idividual carcasses. Usaully makeing more money per carcass translates into more total profit but not always."

And what do you suppose they do with those profits?

 

[Andy]

JB:"And what do you suppose they do with those profits?"
The same things you do with the profits you make on your calves. If you sell half your calves and they bring 500 dollars and and you sell the other half and they bring 400 and your cow cost is $460 did you make a profit?

 

[smalltime]

Big Muddy's hit the nail right on the head.If you were allowed to sell your own meat out of yuor trunk at the truckstop you could keep all the money.GoodIdea!

 

[smalltime]

Sorry about the typing error hit is the word.

 

[Jinglebob]

Andy;

If I sold half at 400 and half at 500 and my cow costs were 460 then there was a net loss of 10.

But I sold mine for 600 and my cow cost was 320 so I made a profit. But Uncle Sam wants a big chunk of it! You just can't win for losing! :lol:

 

[SASH]

Big Muddy's*** the nail right on the head.If you were allowed to sell your own meat out of yuor trunk.

Yep, I can just see myself parked in a dark back alley wearing a dark trenchcoat and glasses. 'Psssst, Hey buddy, you wanna buy some meat?'