Dear Sir,
It appears that demand for beef is on the upswing. I
quote Mr. Les Messinger, a well-known futures trader from
Chicago:
"We also continue to hear a good deal of 'garbage
rhetoric' about how our main problem is poor or reduced
beef demand. Beef demand remains so 'poor' that retailers
continue to show record profits while the world's largest
beefpacker showed a first quarter profit increase of
slightly over 400 percent. Demand remains so poor that
during the past six weeks of very heavy cattle slaughter
(over 680,000 per week average), packers received an
increase on lightweight choice boxed beef of $6.08 per
hundredweight. The price on March 31 was $104.11 compared
with the price today of $110.19 per hundredweight.
Despite this increase in wholesale beef prices, we see
that not only has none of it been passed on to the
producer, but rather the producer is now looking at a
live market that is $2 per hundredweight lower than it
was a month ago."
Demand for beef is excellent. Boxed beef prices last
year were about $102 per hundredweight and live cattle
prices were about $66 per hundredweight. Last week boxed
beef sold for $110 to $111 per hundredweight. The very
best market-ready steers averaged $63.50 per
hundredweight.
Those in the know keep telling us who produce that the
problem is demand. Get the demand up and the price will
go up! What is good for the packer is good for the
producer. Not so!! The packer is paying $2 to $3 less per
hundredweight for market-ready cattle while he receives
an additional $8 to $9 for boxed beef due to increased
demand. Has any of "What is good for the packer is
good for the industry" been passed on to producers
who are losing their livelihoods? No!!!
The president of the National Cattlemen's Beef
Association, Mr. George Swan, wrote a letter to beef
packers requesting they pass some of the profits from
increased beef demand on to the producer. They thumbed
their noses at Mr. Swan.
We have a severely limited market for our fed cattle.
We no longer market our market-ready steers and heifers.
We simply ask what the packer will pay. Often the buyer
hasn't even seen the cattle. He just wants to know how
long they have been on feed. Gone are the days when
several buyers would look at the pen on Monday or Tuesday
morning and offer to bid on the cattle. Now the live
cattle market is only open for a short period of time on
Wednesday, and it is not a market. You offer the cattle
as ready for slaughter with no position for negotiation.
The demand for beef has raised the wholesale price of
boxed beef enough for market-ready steers to bring $68 to
$70 per hundredweight, but the one or two offers you
receive are for $63.50. There is not enough competition.
There is no alternative for you. The cattle are ready.
You have to move then or they will get too big. It is the
most frustrating thing in the world to have a good set of
market-ready steers that you know the packer will make
another $100 of profit per head on, and none of it will
be passed on to you.
Next time you hear an industry person or some
economist or forecaster say the problem is beef demand,
you call him a liar. Beef demand is excellent and
continues to improve. The thing we have worked so hard to
make happen is happening, but we are not receiving the
rewards. Your Check-Off dollars are at work making the
meat packers of this country wealthier. There is much
misconception about the impact of supply and demand on
beef prices. It is time for a new set of rules!!
Max Thornsberry
President, Missouri Cattlemen's
Dear Sir,
The worm finally seems to be turning, as beef is
beginning to receive renewed and well-deserved respect as
a superb, nutrient-rich, health-giving food.
Recent attention has focused on its conjugated
linoleic fatty acid content, which serves as a valuable
metabolic regulator: CLA moderates insulin levels, which
in turn reduces problems with obesity and the risk of
diabetes and heart disease; CLA also blocks tumor growth.
Interestingly, CLA content is reported to be highest in
grass-fed beef.
Beef supplies many other valuable fat factors as well.
Among them are the fat-soluble vitamins A, D, E and K,
which aid in mineral uptake and protein utilization
needed to build good teeth and bone structure and healthy
immune systems in our children.
Beef's complete protein, rich enzyme and mineral
content, and its natural fat factors are important as
well to adults and the elderly, as we also require high
quality food in order to repair and rebuild diseased and
damaged body organs and functions from the cellular level
on up.
Beef's chief competitors the cheap
oil/margarine industry, the "junk" carbohydrate
processors, the synthetic vitamin and supplement
manufacturers have been waging an untrue and
unfair propaganda war against beef and its natural fat
for many years. The truth is finally beginning to come
out: the real human health culprits are heavily refined
and processed sugars and starches and heat-extracted
vegetable oils.
Unrestricted use of beef, including its natural fat,
is increasingly recommended as an important part of
almost any successful corrective and preventative diet
aimed at improving the average American's health and
well-being. In other words: the only thing better for you
than being a vegetarian is eating one!
Jeanne Charter
Shepherd, Montana
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