Subject: Re: Cattle Prices are Down!

From: "chas." <[email-masked]>
Date: 4 Sep 1995 23:39:14 GMT

I live in the Ozarks of MO and the same is happening here.  
A newpaper and the TV news covered this a couple months ago.  
It seems the meat packers have created futures and will not deal 
with anyone else unless cheeep.  It has caused major financial problems
here as small cattle farms support most folks around here.

I doubt anything will change,  cattle farmers need to be hit very 
hard before they will work together.

Just another Corporation takeover sceeeeem.

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From: [email-masked] (Andy Nachbaur)
Date: Tue, 5 Sep 1995 00:19:00 GMT

D>From: [email-masked] (Doyle Hansel)
 >Subject: Cattle Prices are Down!

D>Here in South and Central Texas the cattle prices for calves are hitting
 >the bottom.  Once the price was around the $ 1.10 per pound for calves
 >sold at the auction, now they are about $ .65 per pound.
 >I am not sure what is going on. Maybe it is ranchers dumping cattle on
 >the market or is it import problems?

D>I along with many other people would like to find out and get it turned
 >around.

Poor pasture conditions in Mexico?

Or currency problems leading to a flooding of western feed lots with
Mexican cattle, a by product of NAFTA?

Maybe lack of birth control in the cattle industry, are not most cattle
owners conservative Republicans?

Could also have something to do with Nute's Law, "every time something
goes up, I am buying...and when it goes down I am selling". (Fig Nute,
a cattle rancher who had it made, did not owe a dime, but rode it down
and out.)

Don't know what you or we can do about it but buy now and sell later.
---
 þ QMPro 1.53 þ Es ist euch gut, dass ich hingehe

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From: [email-masked] (Doyle Hansel)
Date: 4 Sep 1995 16:45:42 GMT

Here in South and Central Texas the cattle prices for calves are hitting

I along with many other people would like to find out and get it turned
around.

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From: [email-masked] (Geoffrey Slinker)
Date: Fri, 08 Sep 1995 10:16:18 +0100

In article <[email-masked]>, [email-masked] (Raymond
Petersen) wrote:

> In article <[email-masked]>
[email-masked] (Gordon Couger) writes:
> >From: [email-masked] (Gordon Couger)
> >Subject: Re: Cattle Prices are Down!
> >Date: 5 Sep 1995 23:13:30 GMT
> >The cattle market like all markets goes up and down. It has enjoyed one of
> >the longest up markets in history. It broke last Spring. There is no 
> 
> >This applies to cow calf operations.
> >Ranchers and cattlemen do not work togeather to affect the market. They
> >act in their self intrest. When they precive the market to be good they
> >build their herds and over produce. When the market is poor they go into
> >idle and wait for the demand to increase. The guys that feed cattle don't
> >feed as many for as long when the market is bad so the demand tends to
> >increase. In the short term they tend to hold cattle in the feed lot a 
> >little longer when the market starts to turn bad hoping for better prices
> >this has the effect of increasing the over supply and further driving down
> >the prices.
> 
> >There is also a pretty good drought going on. A combination of dry weather
> >and low prices tend to cause ranchers to dump calves this time of year. If
> >it stays dry they will start dumping cows before too long.
> 
> >September and October are historicly the low point in the market most years.
> 
> Another factor why could be an oversupply of cattle that you 
> didn't mention is high grain prices.  People with cattle and grain 
> are selling the grain (and cattle) because it doesn't make economic sense to 
> feed it to cattle.  Farmers aren't buying stockers because they can't make
> money on them if they have to buy grain for feed.  So I agree - it is
> a demand/supply problem.
> 

I agree it is a supply and demand problem. No doubt. However, there seems
to be no capitalistic driving factors in any agriculture in the USA. This is
what I mean. Most farmers are encouraged, by their University Ag reps for their
state or by other people hired to help the farmer, to borrow money and buy/build
tremendous dry lots, huge upright silos, ellaborate free-stall barns, etc.
Once the farmer is in debt beyound hope, this "over supply" crap starts.
The farmer has a monthly bill of "X" to be paid. The price of cattle, milk,
grain falls. The farmer still has his bills to pay. So, he has to add cattle,
acres, etc... just to meet his bills. So we have a reverse affect in the market,
when the price is down, which should indicate over supply, the farmer has to
increase production so he doesn't loose his "lively hood!" Then, when the price
is high, indicating high demand, the farmer can cut back and not work themselves
log "dogs", like they were worked when the price was low.

There is no over supply of cattle. There is no over supply of milk. There is
no over supply of grain, hogs, chickens, turkeys, etc. What happens is the 
"market" has learned how to control the farmers and that is what is going on!
I am sure there are many that are extremely concerned about farmers organizing.
They say that farmers are self centered, self interested serving people. They
have been forced to "take care of themselves", but they are not the greedy
dogs that everyone would want you to beleive. They help each other, their
communities etc.  They have one of the strongest family oriented lifestyles
known. Some complain that children are forced to work the farms. Those accusing
this have no problem eating at night, maybe they should. While they are out
doing their "city" job and their child is being beat by the baby sitter, who's
life style is the worst. 

Anyone get the picture I am not in a good mood.

> >Ranchers and cattlemen do not work togeather to affect the market. They
> >act in their self intrest. When they precive the market to be good they
> >build their herds and over produce. When the market is poor they go into
> >idle and wait for the demand to increase.

What the heck do you want? Can you afford to buy high and sell low? Do you
buy stock on the stock exchange and sell it because someone wants it regardless
of the price? Or, do you hope to make some money, to make a better life for
yourself? Evidently, you don't give the farmer this same luxoury. Do you make
your living of a farm or ranch? Or are you on some other kind of payroll?

Imagine that the farmers organize and go on strike. I bet the government would
declare a state of national emergency, say that national security is at risk,
and send in the National Gaurd to try and force the farmer to work!

Geoff

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Get that cheese to sickbay.