Why? It's all too simple. Because the cow herd has been shrinking and the feeder supply has been shrinking with it.
No cows = no feeders.
As I've said in the past, when the cow calf producer is forced out of business, the feedlots will be next. It's not like they can run across the border and get American calves either, because the same thing is happening there. The worst part is that it will most likely be the independents that aren't owned by a packer that suffer the most.
The big, on the other hand will get bigger. I can see the industry being split into big commodity and niche players, and those of us medium sized producers will have to decide which way we want to go. Policy in this country, and the U.S. too, for that matter, is designed to encourage big, and to support big. The rest of us are on our own.
Personally, I don't think big is sustainable in the long run, unless we're all willing to sign the farm over to Monsantos and Cargills of the world.
And wouldn't that be a disaster?
No cows = no feeders.
As I've said in the past, when the cow calf producer is forced out of business, the feedlots will be next. It's not like they can run across the border and get American calves either, because the same thing is happening there. The worst part is that it will most likely be the independents that aren't owned by a packer that suffer the most.
The big, on the other hand will get bigger. I can see the industry being split into big commodity and niche players, and those of us medium sized producers will have to decide which way we want to go. Policy in this country, and the U.S. too, for that matter, is designed to encourage big, and to support big. The rest of us are on our own.
Personally, I don't think big is sustainable in the long run, unless we're all willing to sign the farm over to Monsantos and Cargills of the world.
And wouldn't that be a disaster?
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