Unhappy with prices, ranchers look to build their own meat plants - the first article is from 2021 - now the plant is near opening and is now hiring.

Their goal is to cut out the 4 major meat corporations who force prices up.


Unhappy with prices, ranchers look to build own meat plants

Sustainable Beef LLC

Capitalism at it's finest....

I wish them all the best!
I have a friend who is a part time cattle rancher and sells his beef directly to consumers. I know how hard he works and applaud him and others for doing so.

I'd go out of my way to buy meat from these guys.

Great idea. I am now buying meat direct from a rancher. Better quality, much lower cost, and the rancher probably makes more money this way as well.

quote:

Originally posted by Milliron:
I'd go out of my way to buy meat from these guys.

Seriously...TAKE.MY.MONEY!

The new plant is in North Platte, Nebraska. This should help out a lot of Colorado ranchers!

Now they need to do flour mills. (Still not sure how that industry got consolidated.)

For those that don't know:

The "Big Four" meatpackers in the United States are Cargill, Tyson Foods, JBS Foods, and Marfrig. These companies dominate the meat processing industry, controlling approximately 85% of the U.S. beef market. This concentration has significant implications for both ranchers and consumers.

Market Dynamics and Impact
The consolidation of the meatpacking industry has led to a situation where ranchers receive lower prices for their cattle while consumers face rising meat prices. For instance, since 2015, cattle prices have decreased by about 35%, whereas retail beef prices have increased by 8%. This disparity highlights the power these companies hold as they buy livestock at lower prices and sell the processed meat at much higher prices, resulting in substantial profit margins.
The situation has prompted legislative scrutiny, with calls for investigations into potential monopolistic practices. In 2022, Congress considered measures to enhance oversight of the industry, reflecting growing concerns about the impact of such concentration on food prices and rancher livelihoods.

Rancher Responses
In response to the challenges posed by the Big Four, some ranchers have begun to establish their own processing plants. For example, the Sustainable Beef project in Nebraska aims to create a locally-owned facility to process cattle, allowing ranchers to retain more of the profits. This initiative is part of a broader movement among ranchers in the Midwest to regain control over the meat supply chain and mitigate the influence of large corporations.

Profitability and Economic Context
Despite the challenges faced by ranchers, the Big Four meatpackers have reported record profits in recent years. For instance, JBS Foods and Tyson Foods both achieved net profits exceeding $4 billion in 2022, driven by increased consumer demand and rising meat prices. This profitability has raised questions about the fairness of the market dynamics, especially as ranchers struggle to make ends meet.

Overall, the concentration of the meatpacking industry raises critical issues regarding market fairness, economic viability for ranchers, and the impact on consumers. Legislative efforts and grassroots initiatives by ranchers may shape the future landscape of the meat industry in the U.S.



The Big Four meatpackers—Cargill, Tyson Foods, JBS Foods, and Marfrig—maintain their market dominance through several strategic practices:
Oligopoly Structure: These companies form an oligopoly, controlling a significant portion of the meatpacking market. This concentration allows them to exert considerable influence over pricing and supply chains.

Vertical Integration: The Big Four have integrated various stages of production, from owning feedlots to processing plants. This vertical integration enables them to streamline operations and reduce costs, giving them a competitive edge over smaller processors.

Economies of Scale: Their large-scale operations allow them to process vast quantities of meat efficiently, reducing per-unit costs. This efficiency is achieved through automated equipment and large processing plants, which smaller competitors cannot match.

Contractual Arrangements: They often use forward contracts and exclusive purchasing agreements, securing cattle at predetermined prices. This practice, known as "captive supply," allows them to control market prices and supply, further consolidating their power.

Market Manipulation Allegations: There have been accusations of price manipulation and anti-competitive practices. For instance, the Department of Justice launched an investigation into price-fixing allegations against these companies, and some have faced civil suits resulting in settlements.

Global Operations: By operating internationally, these companies can leverage global supply chains and markets, further enhancing their market position.

These strategies collectively enable the Big Four to maintain their dominance in the meatpacking industry, often at the expense of smaller processors and independent ranchers.


--info from multiple sources consolidated by perplexity.ai

Wishing them all the success in the world

AI missed a few things. (My family was in beef, long before it was in ice cream, but much of this is half-remember hearsay.)

As far as I can RECALL (and I’ve been hit in the head a few times.)

The USDA requires meat inspectors on site, to be able to slaughter - there’s been a push to ease this/it did get eased during COVID, TMK.

It’s not always possible for a small slaughter facility to be able to get a USDA inspector when they need.

The overseas/megacorp ownership of grocery stores, limits market access of lots of products/it can be difficult for a small company to play the “games” the big companies play about paying vendors. (Dealt with this, first hand)

Ecologically, we are eating FAR too few bovines.

The Plains/much of the Southeast, and maybe the tundra, should all be getting rotationally grazed.

I truly hope they are successful

Me, too. I use a local guy for pork, and he has beef, too, but I mostly just buy a 1/2 share and that lasts us a good 6-8 months.