Livestock “The greatest homage we can pay to truth is to use it.” – JAMES RUSSELL LOWELL OCTOBER 15, 2010 •
MARKET
Digest D Volume 52 • No. 11
Who Done It? by Lee Pitts
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“Lettin' the cat outta the bag is a whole lot easier than puttin' it back in.” ton, D.C. and it may be far more important to the future of the beef business than the one in Fort Collins. That’s when the retail sector will be put on the hot seat. If you really want to see who has brought you the industrialization and chickenization of the meat industry you need look no further than in the faces of the businessmen in attendance from Bentonville, Arkansas.
Winners And Losers The evidence that something
is terribly wrong is irrefutable. Since 1980, this country has lost 32 percent of its’ sheep producers, 41 percent of the beef producers, 81 percent of the dairy producers, and 91 percent of the swine producers. And as the ranks of farmers and ranchers were rapidly thinning it was no coincidence that Main Street rural America was having a “going out of business sale” of its own. And so, for those who want to revive rural America and save what is left of the beef business
the question becomes, who is mostly responsible? Are JBS, Tyson Foods, Cargill and National Beef Packing the cause of our considerable discomfort or are they merely a symptom? Although it’s easier just to lay all the blame on the Big Four, the numbers reveal another villain. One of the best ways to quantify what has happened to the livestock industry is to examine what share of the dollar spent on meat at the retail level makes its way back into the pockets of the producer. The numbers may surprise you. In 1990 the rancher received 59 cents of the beef dollar, the packer and packinghouse worker eight cents, and 33 cents went to the retailer. After two decades of increasing concentration both at the wholesale and retail levels, those numbers changed drastically. The rancher’s share dropped from 59 cents to 42 cents, the packer/packinghouse worker’s share went up a penny to nine cents, and the retailer’s share jumped from 33 continued on page two
PCRM TV ad takes aim at McDonald’s
NEWSPAPER PRIORITY HANDLING
by LISA M. KEEFE
he Physicians Committee for Responsible Medicine is set to unveil a local television ad campaign in Washington, D.C., that links the city’s relatively high rate of deaths from heart disease to its local concentration of McDonald’s and other QSR stores. The ad, which can be seen on the organization’s website, shows a woman weeping over the body of a man in a morgue. In the man’s hand is a half-eaten hamburger. Near the end of the commercial, the McDonald’s logo appears over his feet, along with the line “I was lovin’ it,” a play on the QSR’s current advertising tagline. The commercial ends with the line, “Tonight, make it vegetarian.” PCRM says in a press release on its Web site that Washington, D.C. has more McDonald’s, Burger King and KFC outlets per square mile than eight other cities with similar population sizes. The group also quotes the Centers
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by LEE PITTS
Uneducated
www. aaalivestock . com
t’s estimated over 2,000 people went to Fort Collins, Colorado, to beg the government to fix what ails our industry. Mostly the folks came to complain about the increasing concentration of the four largest meat packers and their use of captive supplies to lower fat cattle prices. For decades independent livestock producers have called on both the Justice Department and the Packers and Stockyards division of USDA to rein in the packers by enforcing already existing antitrust laws. R-CALF and other farm groups said we might never have another opportunity like this one to save the independent rancher. But even if the government does act to stop the packers from taking the rest of the beef industry captive, it may already be too late. It is certainly already too late for the 40 percent of the ranchers in this country who have left the business since 1980. But in trying to find out exactly who was responsible for the cowboy’s disappearance there is a growing body of evidence that the meatpackers may have only been an accomplice, not the primary perpetrator. The Ag Secretary and the Attorney General have one more listening session planned, this one on December 8 in Washing-
Riding Herd
for Disease Control and Prevention as saying that the age-adjusted death rate from heart disease in Washington is the second-highest in the country, above high-obesity states like Alabama, Kentucky, Oklahoma and West Virginia. A PCRM representative explained to Meatingplace that the group also relied on other scientific research that has made a direct connection between incidence of heart disease and the density of fast-food outlets in a geographic area. “Our city’s addiction to Big Macs and other high-fat fast food is literally breaking our hearts,” says Susan Levin, M.S., R.D., PCRM’s nutrition education director. “It’s time to tackle the district’s heart disease problem head-on. A moratorium on new fast-food restaurants could be a critically important step toward fighting this epidemic.” McDonald’s menu offers “almost no healthcontinued on page four
id you see where two Princeton sociologists conducted a study at eight “elite” universities and found that while most extracurricular activities increased a prospective student’s chances of admission, it actually worked against them if they were leaders, and or, won awards in 4H, the FFA and ROTC? I can only assume that these “elite” colleges were Ivy League schools where professors and grad students hold teas to discuss Plato and Aristotle and eat food they’d have no idea how to grow. In our society there is a stigma attached to anyone who gets their hands dirty or is a vocational student. When I was a vo ag student 40 years ago our ag classrooms were separated far from the main campus and most of the teachers likewise felt that vo-ag kids dwelled on the outskirts of civilization. We were second class citizens and I was expected to go to law school or to follow my brother to West Point. While I had the grades to go to an Ivy League school I had neither the money nor the desire. Instead I went to a college whose motto was “Learn By Doing” and it has served me well. I have a chip on my shoulder about your average white-collar worker looking down their nose at vocational education and then complaining when there is no one to work on their Mercedes. That chip on my shoulder flared up again when I offered to help a lost soul who was stranded by the road with his hood up and his engine sputtering. He was staring at the motor but it might as well have been the trunk for all he knew. “Hi, got a problem?” I asked, trying to be friendly. “Whoa, first thing I’d suggest, is that you back away from the engine or else take off your jacket and that necktie.” “Why do you say that?” asked the uppity Mr. Smarty Pants. “Because your tie could continued on page six
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