Just because we have buying restrictions right now isn’t because we don’t have enough cattle or product in the system—it’s because of the logistics of getting it from lot to plate.

@LonesomeLands @seedcattleguy

From this data they send orders to their wholesaler or for larger groups directly to the packer sales desk. The wholesaler then collects ALL their purchase orders and send them to the packer sales desk...

and from this information packers plan the end of the week or the next weeks production schedules. Meaning they decide how many cattle to buy and how the lines are going to run.

Monday: Retailer/Wholesaler PO
Wednesday: Packers send confirmation
Friday/Monday: Trucks loaded for wholesaler/retailer delivery

Transit time varies depending on if they are using “Less than Truck Load” shared transportation network for smaller lots that will take 3-5 days to deliver because they make multiple stops or company owned fleet trucking which is dock to dock.

Monday/Tuesday: Product arrives at the wholesaler
Wednesday+: product ships to retailers and is out on the shelves

7-10 days.

From feedlot to shelf, it takes 7-10 days.

Now why is this important:

If it takes ten days to replenish inventory, retailers have to set buying restrictions on products to reduce the amount of panic buying so that “Panicked Patricia” doesn’t buy all ground beef on Monday wiping out the stores supply for everyone else.

Just because we have buying restrictions right now isn’t because we don’t have enough cattle or product in the system—it’s because of the logistics of getting it from lot to plate.

@LonesomeLands

Short a tweet: (twitter threads )

Retailers have par levels established on historic buying trends that allows them to buy and keep shelves stocked during normal flow. from here PO’s are cut. You can see on the retail side, no one knows what to buy right now. It’s all SWAG.