Warning from Texas Rancher

[Texans42]

Here’s what I don’t understand. Why aren’t there more packers? Seems crazy that there aren’t more small kill plants


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There use to be. Small kill plants/packers do all right but they don’t have the ability or reach to hit the larger cities, where majority of the beef is going. Also the big packers are Very vertically and horizontally integrated. How many cattle feedlots does JBS own or have recently owned? A bunch close to a million plus head capacity at one time. Even the ones they sold/divided out, they still have a part of.

How does a small packer compete with a large packing house that can drive down cattle prices and still pull a profit due to their economies of scale, they simple can’t. They have to find a niche.

There is a reason producers are not exactly overly friendly with packing houses.

There are some ranchers that are large enough to do retained ownership and can work directly with a few Consumer endpoints. In that case the packer is limited in its profit margin, and that’s usually you smaller independent packers

[Dushon]

There use to be. Small kill plants/packers do all right but they don’t have the ability or reach to hit the larger cities, where majority of the beef is going. Also the big packers are Very vertically and horizontally integrated. How many cattle feedlots does JBS own or have recently owned? A bunch close to a million plus head capacity at one time. Even the ones they sold/divided out, they still have a part of.

How does a small packer compete with a large packing house that can drive down cattle prices and still pull a profit due to their economies of scale, they simple can’t. They have to find a niche.

There is a reason producers are not exactly overly friendly with packing houses.

There are some ranchers that are large enough to do retained ownership and can work directly with a few Consumer endpoints. In that case the packer is limited in its profit margin, and that’s usually you smaller independent packers

Hadn’t really thought it through. Thanks for typing that out [emoji1303]


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[Razrbk89]

Here’s what I don’t understand. Why aren’t there more packers? Seems crazy that there aren’t more small kill plants


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The big boys put the screws to them and knocked them out long ago. Big corporations run the show and will continue to do so, because they have our “representatives” bought.

As for the growers, those with a good plan who don’t overstock can ride stuff like this out for a good while. Id figure it hurt the feedlot folks the worst, but I’m honestly not sure who’s all tied in to whom. Prices will come up sooner or later and until then, I just wouldn’t/am not selling anything.