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Re: OT Cow prices


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Posted by JD Seller on October 18, 2015 at 07:35:53 from (208.126.198.123):

In Reply to: OT Cow prices posted by bigmarv1085 on October 17, 2015 at 20:30:24:

Laa and the others have the cause and effect of the price drop.

I will disagree some on the retail price not falling. We deliberately ran our freezer empty to clean it out. So we have been buying some cuts/type of beef for the last few weeks. I can buy 90% lean beef for $2.39 per pound in 10 LBS. tubes or give $2.49 in smaller packages. This is at Fareway Foods a regional store chain. This price is half of what it was bringing in July. Other competing meats are driving a lot of the price reduction. I can by boneless chicken breasts for $1.69 per lbs. or boneless pork loin for $1.49 per lbs.

Beef prices at the retail sale price needed to come down. If they had stayed high we would have lost market share to pork and chicken. Once consumers switch they are hard to get back. We did this in the late 1970s and it took years to gain much in the per person consumption of beef.

The reality of beef production is that it is a mature market and therefore margins are going to be tight over the long haul. You will have short periods of higher profits but they usually are followed with periods of loses. So those that do not spend the profits like drunken sailors usually survive for the long haul.

LAA hit part of it in that he stated he needs to have plenty of grass to stay profitable. It is more you need to maximize your ground's yield in the crop it will produce the most profit from. It sounds like for his ground that is grass production. For the majority of my ground that crop is corn production. The marginal ground will raise grass more profitable but the better crop land the crop is corn for my area.


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