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Prices!

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    Prices!

    I am a cow/calf producer and it sort of bugs me how the media is always saying how rosy the cattle business is. Compared to what? Take a look at what calves were sellin for back in 1992 and compare it to today. 1992-$1.22 for 700 lb. calves...2001-$1.40 for 700 lbs., which looks great! Then take a look at what a new pickup costs, or a tractor, or a tonne of fertilizer, or a liter of fuel, or worst of all a machinery part! We are not going ahead but just treading water (maybe!). The grain guys are definitely sinking!!

    #2
    Cowman:

    How right can you be. These are the challenges of today. It is very important for all of us to be looking at ways to cut our costs just to stay afloat. My hope is that people begin to pool their knowledge and resources to do this. Their are many ways that we can handle this but the first step is up to those that are willing and able to adjust to these changes and the challenges of the future. Go luck to all those that feel they can just keep doing what they are (and have been ) doing expecting better results!

    Comment


      #3
      Cowman, everything is relative, isn't it! Consumers don't stop to think about what it costs to get their food to them. All they are concerned with is that it is safe, cheap, convenient and has some benefit for them. We make such a big deal out of tax freedom day, why not food freedom day?!?

      The producers share of food for the year was paid for by January 9th. A family's cost of food for the year was paid by February 17th. Certainly nothing to be proud of or write home about. It's not okay that we spend less than 10% of our disposable income on food. Yet, there are those who spend far more on something that isn't necessary for daily life.

      Look at how gas prices keep going up and people grumble some but has that prompted a huge increase in transit use or bicycle riding? Do people give a second thought to the exhorbitant salaries that are paid to sports figures or the subsidies that go to places to keep sports venues open? Everything is relative.

      Linda

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        #4
        Value Chain:
        I remember back in the early 70's this guy came around selling memberships in a buying co-op for farmers and ranchers. My dad signed up for about $300. He used it right away to buy some insulation for a shop and saved about $400 but the scheme went bellyup shortly after that. It sure sounded like a good deal at the time. Maybe we need something along those lines but a little more secure.
        If you had a big enough membership you shoud be able to negotiate some fairly decent prices.

        Comment


          #5
          Hi All
          Prices for food are the same the world over people work less hours to feed themselves.
          I still feel it is the farmers fault for selling too cheaply.
          We must learn the true value of what we produce and co-operate with one another
          to achieve sensible prices.
          I think we have gone too far down the produce it cheaper route.
          We need to try the, this is the price take it or leave it,approach used by other industeries. It seems to work for them so why not us? We would have to realize we may not always sell all we can produce but at least it would be nice to make a profit on what we did!!!!

          Regards Ian

          Comment


            #6
            Yes the cooperative way is one of the ways to ensure we can both produce a product for less and also recieve a fair price for the product we produce. Our market place has many components in it and we deal on a global base. It is therefore a prudent design to align yourself with those that have a common goal. The many issues that we are faced with today are only a small fraction of what we see down the road into the future. Large companies can sell your product at lower costs because they can produce them for less and still maintain their profit margins. The only way you will be able to make YOUR markets work for you is to produce what they have trouble producing in the large assembly lines. This means high quality product, packaged right, cut the same every time and with a strong safe and traceable history!

            This may sound more difficult then it is , but it can be done a lot easier then we all may imagine! We shall see what the future holds, but I for one plan to make it happen rather then watch it happen to us all!

            Comment


              #7
              Value Chain:
              I agree with you basically. I can't see how I can really increase the value of my product(feeder calves) other than make sure they are of top quality. I do believe the price of beef is high enough! Any higher and the plain fact is a lot of people won't be able to afford it! The working poor don't have a hell of a lot of disposable income! I do feel that a true buyers co-op could work(not the old co-ops that are no better than the private stores). I think they have some of these new generation co-ops in the States. If they could shave 10% off the price of fuel, fertilizer, chemicals, parts they would be well worth it. I guess the trick is to get enough people committed so that they would have some bargaining power.

              Comment


                #8
                cowman:

                You are right that the old coop type situations work the best. The main reason for this I feel is that each participant actually saw some reward come back to them from the system. Where the new coops are just another form of government or business! But In this day and age if you want to stay alive you have to use the resources at hand.
                I believe that we have the infrastructure in place to develop some of the most innovative forces in the business world. The ability to be a cost effective producer with a stabale customer base is not that hard to reach. People are concerned with change (well there are some changes) but nothing that pulls your integrety from your product, all these changes do is enhance your product. We are not talking about raising prices here either. We are talking about ensuring that the profit in your product is optimized.
                We all know that at some point in time we are going to have to do some thing diffrent, are you going to wait for someone else to tell you or are you going to listen to the market and look into the future and plan your strategy! Well I for one am planning for the future. I do not look at my local area as my customer base, the world needs our product. Can you and are you ready to supply? I know you care about the product you raise and the end user, but like many others are frustrated with todays' market. Well, my question is are you ready to do something about? Are those that have the foresight ready to stand and look at what may be needed now and into the future! Would sure be interested to see how many are ! Good luck cowman! I know, I have plans for the future .... do all of you?

                Comment


                  #9
                  If I was twenty years younger I would be more interested, but my plans are mostly about retiring and hitting the beach at Cancum! This old cow business has been pretty good to me over the years and maybe it's time I let someone else have a kick at the can! It does seem to me that every year higher prices have taken more and more of my profits even though I run a pretty tight operation and cattle prices are very good. I just feel the guy with the assets, taking the risk, and doing all the work is not getting his fair share of the pie. I hope it works out for you.

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