Kansas Cattlemen breaks down the cattle market crisis


I’ve seen similar issues presented in the lumber industry.

Seems like throughout our various supply chains you will come across the choke point, and it seems to be where extremely large multinational corporations are making record profits from the “shortage”

I’m the furthest thing from a commie, but these multinational corporations have our country in a vise and they are squeezing every last ounce of value from us.

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Isn’t this where capitalism comes in. It takes a 2nd party to come in, same if not better product at a cheaper price. This causes competition between companies and in turn better pricing.

The problem is when there is only 1 choice or a few where they collectively plan to raise prices together and both profit.

And I wouldn’t be surprised if there’s some type of government involvement that places artificial hurdles that hinder new entry into the market space

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I’ve been running loads from all 4 companies for almost 10 years. There is no one else because they buy everyone out.

Of course there are. And the tax changes on inheritance is going to crush family farms.

Cattle industry sure seems like a tough business. How can people stay in business with losses like this:

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they slowly get pushed out of it. it takes a long time for this to happen naturally, but Covid accelerated things by about 5-6 years.

i’m in the lumber industry

In 2008-09 we had a financial meltdown… no new houses being built. no one buying houses and renovating. no RV production
those are all HUGE hardwood lumber industries.

Prices fell to record lows and about 1/2 of our business was decimated. sawmills out of business, truckers, loggers, moulders , etc etc

it has taken this long and now we are all busy… thanks to corona the only thing people can spend their money on is fixing their homes… ( no dinner, shopping, travel, vacations etc )

now that prices are back up to where the were in 2008 people want to regulate? no prices are just back to where they were.

If you want to open a sawmill… all the power to you, just know that markets fluctuate. and this market will correct itself eventually, and prices will fall again… so let the producers make money while they can because we let them lose it during the corrections

Thats known as collusion, and whether explicit or implicit, it’s illegal under American anti-trust laws.

Interesting clip OP.

Why is every gas station within a few miles the same price? Give or take a nickel?

Because it’s one of the most efficient commodity markets in the country. Everyone pays practically the exact same amount and make literally pennies per gallon. Gas station profits are 99.99999% from the sale of Twinkies, Doritos, and beer.

It looks a lot like implicit collustion but it’s not done so to gouge consumers, actually just the opposite.

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That’s some real inside baseball shit there.

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The entire ag industry is this way. People love to complain about ag subsidies but without them providing some stability there would only be huge corporate farms buying up smaller family farms every time there’s a downturn.

Will watch later. I just read The Grapes of Wrath. It sounds like similar issues 100 years ago.

Dude. You just posted in the gas thread… if these gas stations were making pennies… and the price has doubled. Now they’re making dollars. Correct? And they have all doubled… sounds like all the gas stations raised their prices together… the same as my business. The market is the market

The gas stations aren’t. Their margin on gas remains as pennies. And when I say pennies per gallon, it’s like 2 or 3.

It’s a monopoly and we need to kill the people who think it’s ok to do this to set a precedent.

Cattlemen are greedy and overpay for calves so they can have more. Then bitch when they produce more than the packers need.

Cry me a River. This guys Facebook posts have been shared by my friends. He basically bitches about open markets while advocating for regulation to limit competition for his product. What I haven’t seen him do is call for his fellow producers to limit their production. He just wants to produce all the supply he wants and have regulations to artificially hold up his prices.