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Yeah they have.

On-farm meat production that is not marketed direct-to-consumer cannot compete against confinement operations.  Not so much on price, tho' there is that too, but more on the quantity of meat being shipped and the shipping schedule.  As grocery stores moved to a Just-in-Time stocking method they demand specific amounts of meat at specific times with a short sales cycle to keep the capital tied-up in inventory at a minimum.  A on-farm operation markets low volume and yearly (cows) or about every 4 months (hogs.)  Not enough product at too long intervals.

Grocery store chains ensure their Just-in-Time supply by forward contracting with IBP, usually.  (IBP/Tyson purveys to ~40% of the total meat market in the US.)  This locks-out the on-farm production from any given area, such as Iowa, as the farm-cycles in a given area coincide.  IBP, because they operate nationally, and internationally, is able to 'smooth' the production cycle.  As a kicker, the on-farm operation has to sell when the critters are ready for market to clear the area for the next go-round.  That means they are always selling when supply is high, from their given area, and price low due to the injection of supply.  IBP sells daily and thus captures high prices when supply is low to ride them over the low-price patches.

One side affect is IBP is effectively compounding their ROI daily (!) allowing them tremendous financial advantages.

The above is why I wrote "silage is irrelevant" in my previous post.  It doesn't matter what you feed the moo-moos and oink-oinks.  Unless the meat is marketed direct to the consumer you can't sell the critters profitably over the long haul.

A doo run-run-run, a doo run-run

by ATinNM on Sun Mar 9th, 2008 at 03:01:51 PM EST
[ Parent ]
We buy our beef from a local, small, organic 'hobbyist' once or twice per year (then into the freezer). We get our eggs from two local, small, 'side-liners and our chicken and turkey from a regional, but free-range, producer. Only the pork is from who-knows-where. Plus, we're not big meat-eaters in any case.

Funny thing is that our 'kids' (35 and 32) rather dislike our beef, because it tastes 'gamey' to them. To my wife and I, it tastes like the beef that we used to get before we had chilluns - in other words, the good stuff.

It must be because we live in the Pacific NW, which doesn't have much of a factory meat-production industry, that this is news to me. I knew that it existed, but I had no idea that it was ubiquitous.

paul spencer

by paul spencer (spencerinthegorge AT yahoo DOT com) on Mon Mar 10th, 2008 at 01:09:51 PM EST
[ Parent ]
(Picked a good time to take a break.)

Don't feel so RvW, I remember when the Kent Valley was mostly dairy farms!  :-(

(LOL)

A doo run-run-run, a doo run-run

by ATinNM on Mon Mar 10th, 2008 at 01:29:25 PM EST
[ Parent ]
There's a lot of dairy farms left out here, but I doubt that there's even one in Kent nowadays.

paul spencer
by paul spencer (spencerinthegorge AT yahoo DOT com) on Tue Mar 11th, 2008 at 12:48:34 AM EST
[ Parent ]

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