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Here’s my thoughts:
If you want to help the cattle supply chain, get the people with the feeder cattle now on hand to put them on maintenance rations or hay and grass, anything to not push them into the feedlot and compound the supply chain problem
This fixes multiple things.
If you want to help the cattle supply chain, get the people with the feeder cattle now on hand to put them on maintenance rations or hay and grass, anything to not push them into the feedlot and compound the supply chain problem
This fixes multiple things.
If you want to use government $$ to help industry, this is where you do it.
to fix it in the medium term, a 120-200 day supply chain problem
We need to slow the chain, not cut it or destroy it.
If you stall at that point it’s the most effective.
-Cows can keep having calves
to fix it in the medium term, a 120-200 day supply chain problem
We need to slow the chain, not cut it or destroy it.
If you stall at that point it’s the most effective.
-Cows can keep having calves
-stockers can keep rolling turns, that market maintains integrity because there is velocity of $$ flowing down the value chain
-$$ flowing down is because there is still a market for feeders because there is now a supply shortage to feedlots because feeders flow had stalled
-$$ flowing down is because there is still a market for feeders because there is now a supply shortage to feedlots because feeders flow had stalled
-now that placements have slowed, there isn’t a huge wall of cattle right behind the current ones backing up
-current fat cattle can be marketed with leverage to the packer because their supply will be limited in the near future, the packer “endless” supply becomes limited
-current fat cattle can be marketed with leverage to the packer because their supply will be limited in the near future, the packer “endless” supply becomes limited
-packer gets a break because they don’t have to push schedule to the max with a system that’s about to break under the weight of Covid complications
-there won’t be enough meat for everyone for a little bit, but we won’t wreck everything just TRYING to maintain constant flow
-there won’t be enough meat for everyone for a little bit, but we won’t wreck everything just TRYING to maintain constant flow
-it would also be cheaper and the $$ would go further with feeder cattle because they don’t physically eat as much
-you would remove efficiency from the system, which may be the only way to save it fro itself
-you would remove efficiency from the system, which may be the only way to save it fro itself
I could be wrong about this, but I don’t think so.
Importantly... The people (mostly feedlots, but also other producers) that took the first blows of this should be taken care of also, get rid of the payment limits for those people, we will need them to feed everyone.
Importantly... The people (mostly feedlots, but also other producers) that took the first blows of this should be taken care of also, get rid of the payment limits for those people, we will need them to feed everyone.
There is a train wreck happening, and we need all ideas thrown out there.
Think of how you could uncouple the back part of the train so it doesn’t get destroyed and you let the first few hit the wall/whatever wreck is ahead because there currently not any breaks on the system
Think of how you could uncouple the back part of the train so it doesn’t get destroyed and you let the first few hit the wall/whatever wreck is ahead because there currently not any breaks on the system
Then you clean up the wreck, fix the track and get things running again.
How big of a wreck do you want to clean up?
-Jerod McDaniel
How big of a wreck do you want to clean up?
-Jerod McDaniel
And if you want to fix the train wreck on a longer term timeframe... get people to consumer more beef, get more packing plants built, and lower cow numbers.
Do those and we will have a healthy beef industry.
Do those and we will have a healthy beef industry.
