Kansas Cattleman Explains how the American Cattleman is Being Destroyed
“Talk low, talk slow, and don’t say too much”
By Jim Mundorf
I’ve spent hours trying to write out an explanation of the cattle market. My problem is that I don’t understand what the hell is going on with it my own self. Luckily Steve Stratford has posted this video. Steve has been an order buyer for 30 years, has his own registered Angus cattle herd, feeds thousands of cattle a year in commercial yards, and works with Pratt Livestock salebarn in Pratt Kansas.
Just like other markets that are easily manipulated, (i.e. healthcare, mortgage) the cattle market is extremely complex with all sorts of factors continuously figured in. Steve does a great job striping it down and simplifying it. There’s a lot in there to swallow down, so I’ve tried to lay it out and expand on things.
Producer- What is usually called a cow calf operation. Has cows and bulls, breeds the cows and raises the calves until weaning.
Stocker/ Grower/ Backgrounder- Guy who buys weaned calves to feed and grow. This is done in a variety of ways depending mostly on location, some are grazed and some are fed in lots.
Feedyard- These outfits buy larger calves from the stocker to, “finish” or put the last pounds on before sending to market.
Cattle Market
Live Market- “3 or 4 packers” come and bid on live cattle. This market is the base for all other cattle prices.
Grid Market- “We have no idea what they are going to bring.” These cattle are delivered to the packer and their carcasses are inspected and graded and those grades factor into the price that will be paid for their carcass weight. This process takes all risk off of the packer, and puts it all on the feeder. Meaning the feeder will only send his best cattle to the grid and rolls the dice with below quality cattle. For doing that they get a premium. “Cattle turned in on the grid will get a premium to whatever the monkeys in the cars that drove around and found the cheapest guy to sell out to them.”
Live Show List- “Coon shit, cattle too old, cattle not good enough.” These are the cattle that sell on the live market that the feeder knows will not grade well on the grid market. These cattle determine the base price for all cattle sold not just live and grid, but also prices for producers, stockers and feedyards.
Monopolization- “The monopolization of the system is severe, it is real and we have no control over our pricing of our product.” Cattle prices are supposed to be based off of the price of beef, it isn’t. The fancy term for what is going on is oligopoly, which is when a number of corporations work together as one to monopolize a market also known as a trust. Tyson Foods, Cargill, National Beef, and JBS have over 80% market share. They are currently facing multiple lawsuits claiming collusion and market manipulation.
Country of Origin- “We have a government that allows the packer to bring an inferior meat product in from wherever they chose to…and they get to use our good name by putting a package on it that says product of the USA.” Right now imported cattle and meat, “inferior products from inferior countries,” that are processed in an American packing house are labeled product of the USA.
Beef Checkoff- “The American producer has spent millions of dollars to advertise the product of four companies that get up everyday trying to screw them.” Every time cattle are sold a one dollar per head fee is taken out of the check and paid into the Beef Checkoff. Their budget is over $40 million a year to advertise beef which no longer has anything to do with the price of cattle.
Fight for the American Cattleman
“If that does not piss you off, if that does not make you want to fight for the American Cattleman I don’t know what would.” If that does make you want to fight for the American Cattleman send this to all of your elected officials and everyone else you know. Ask them: 1. To demand an increase in the percentage of negotiated cash cattle. 2. To enforce the packers and stockyards act and break up the beef trust. 3. Institute Mandatory Country of Origin Labeling, MCOOL, and 4.To remove the beef checkoff.
Also follow Steve Stratford and thank him for what he is doing. Here’s another something I found about him.
Read Also: The Bedfellows, how the beef packing cartel is screwing everybody
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