August 1, 2002
No Competition Can Be Terrifying
By Mike Callicrate
August 1, 2002
The National Cattlemen’s Beef Association (NCBA) asked the question in their last “Directions” publication, “What is the biggest challenge facing seedstock companies?”
“Surviving the terrorist among us who wants to eliminate the beef checkoff, outlaw grid marketing, bankrupt the packers and in general raise all kinds of chaos is the beef industry’s biggest challenge. If they want to commit suicide, that is their own business. I strongly resent their efforts to wreck the economy of the entire beef industry,” said Mark Gardiner, Gardiner Angus Ranch, Ashland, KS, one of the organizers of U.S. Premium Beef (USPB), partner of Farmland/National Beef, the nation’s fourth largest packer.
I remember attending a USPB membership drive meeting where the question was raised about whether USPB would become a major captive supply source for the fourth largest meatpacker Farmland/National and, if so, wouldn’t that have a negative impact on the cash market, considering that Farmland/National was the only remaining big packer not using captive supplies and bidding almost exclusively in the competitive cash market. “What will happen to the cash market if USPB, wanting to supply half of Farmland/National’s needs, gives their cattle to Farmland/National without negotiating price?” USPB CEO Steve Hunt responded that USPB captive supplies would likely have a negative effect on the cash market, but as a member of USPB, you would become a packer and more than make up the difference in price on the meat side of the business. Feeling vulnerable, desperate, shut out of the cash market and left with no other choice but to “Join-em”, reluctant cattle feeders began signing up.
We now know that for the investment of approximately $54 per head in USPB stock, giving the owner the right and obligation to deliver cattle to Farmland/National, much has been lost, including the cash market for finished cattle and many of our cattlemen neighbors. Since 1978, when the big four packers controlled 36 percent of the steer and heifer slaughter compared with 82 percent today, concentration and the resulting market power has cost cattle producers approximately $400 per head of their share of the record high price the consumer pays today for fresh steaks, roasts and ground beef.
Of course, USPB cattle feeders can be consoled in their desperation and bankrupting losses with last year’s $25.87 per head premiums they received over the manipulated and arbitrary cash market price their non captive supply competitors received. A small consolation today with the cash market at $62/cwt and losses as much as $225 per head. And still left unexplained, last week some of the top premium grid cattle, grading 85% choice, netted back a deeply discounted $59/cwt at the same time consumers buy beef priced off an $85 cattle market. While packers and retailers swim in record profits, it looks like wounded USPB members have been swindled into buying their own hanging rope.
Mark Gardiner may not realize it yet, but his bull customers, who are part of the cattle industry, distinct and separate from the “beef industry,” will be needing fewer of his bulls as they go broke selling cattle on the discount weighted big packer grids. Instead of profiting from a USPB sponsored market for his bulls, he might be caught in the same deadly alliance trap he has helped set for others.
Ranchers and rural communities have far more to lose in land, cattle, and income by participating in the abusive Tyson/IBP, Cargill, ConAgra, Farmland/National type alliances and supply chain snares than chicken farmers lost when they fell for the same scam some thirty years ago.
Perhaps the terrorist label might be better applied to the Tyson/IBP – WalMart dominated big meat packer/retailer monopoly that is stealing from farmers and ranchers, destroying our safe and dependable food supply, and threatening the well-being of our precious rural communities instead of being used to defame, libel and slander those of us that are sacrificing all we have to preserve the economic freedom and social well-being that only a fair, open and competitive market system can provide.
Stay Informed!Subscribe to information and news updates related to farming, food and health issues, click here!
Follow me on TwitterMy Tweets
- This Cattleman's Got A Beef
Photo: Sean Cayton - 2003People producing good food from happy animals, while improving the environment, shouldn’t have to fear the government.
Photo above featured in a 2003 article: This cattleman's got a beef, Mike Callicrate and Ranch Foods Direct take on the big meat packers by Kathryn Eastburn
- BIG Food Exposed
- Great Ranches of the West
Purchase Great Ranches of the West for only $34.95 and $20 will go to an Organization or Project of your choice!
"An eye opening and heart touching portrait of a culture and industry that we are in great danger of losing. This book will help readers understand the urgency of preserving the Western ranchlands inhabited by families and rural communities that provide nourishing food for our nation, preserve a healthy natural environment and entrust that great American values will endure."
- Mike Callicrate
An Endangered Species
Every month 1,000 ranches go out of production. It's the national security issue that no one is talking about.
Food Policy & LawE. Coli Confessions Part I
by John Munsell | Oct 11, 2011
Editor's Note: This is the first part in a series written by John Munsell of Miles City, MT, who explains how the small meat plant his family owned for 59 years ran afoul of USDA's meat inspection program. The events he writes about began a decade ago, but remain relevant today.
They say that confession is good for the soul. I've been involved in a series of ugly events since my plant in 2002 recalled 270 pounds of ground beef contaminated with E.coli O157:H7 and now want to admit the embarrassing truth for public review. more
- advanced meat recovery
- beef checkoff
- Big Food
- Callicrate Beef
- Callicrate Cattle Co.
- Colorado Springs
- Dudley Butler
- e. coli
- Eric Schlosser
- fast food nation
- food Inc.
- Industrial Agriculture
- meat packers
- Mike Callicrate
- Organization for Competitive Markets
- pink slime
- Ranch Foods Direct
- Rick Hughes
- Tom Vilsack
- U.S. Farmers and Ranchers Alliance
- Vandana Shiva
Top Posts & Pages
- 9 Disappointing Facts About Chipotle
- Big packers are gangsters, thugs and thieves
- Subscription Services
- Beef's Reputation On Sale - Price Shoppers Beware!
- McDonald's Angus, Mushroom & Swiss Burger - Delivering way more than meat
- Mike Callicrate featured in "Foodopoly" by Wenonah Hauter
- "There shall be a great corporation owning and controlling the foods of this country."
- Pink Slime: Dark Side of Industrial Food System Exposed
National News Supplement