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A Conference on Food, Farming, and the Life of Faith

September 2013
MikeCallicrate.com
So this is where you grew up...
What happened Grandpa?

The U.S. has lost over 40% of it’s ranchers,
90% of it’s hog farmers and 80% of it’s
dairymen in the last 30 years.
"What we support prospers, what we feed grows." - MikeCallicrate.com

2
The National Security issue
no one is talking about!
Photograph from the book, Great Ranches of the West ©2007 Jim Keen, All Rights Reserved
Read a sample chapter and order the book at www.greatranchesofthewest.com – 800-363-5336

3
Farm share of the consumer retail beef dollar
A picture of abusive market power
70.0%
65.0%

1950

1975

60.0%
55.0%
2012
1995 1996

50.0%

1997

1999

2000

1998
2006

45.0%
40.0%

The value of a finished beef animal is over $3,000
at the retail meat case. This nearly 20% reduction in the
farm share of the consumer beef dollar represents
around $600 per head loss to the cattle producer.

2013

2009
2002

35.0%
1

2

3

4

5

6

7

8

9

*All Fresh Choice Beef – USDA-ERS Data
4
Prolonged Losses to Cow/Calf Producers
U.S. Cow-Calf Returns Per Bred Cow
Returns based only on operating costs

Returns based on total costs

$200

$100

Dollar Returns Per Bred Cow

$0
-$100
-$200

-$300
-$400
-$500

-$600
-$700
Source: U.S. cow-calf production costs and returns per bred cow, USDA-ERS
-$800

Operating costs do not include: Hired labor, Opportunity cost of unpaid labor, Capitol

R-CALF USA
Eric Schlosser, author of the best seller Fast
Food Nation, has an apt description of the
industry.

Over the last twenty years, about half a
million ranchers sold off their cattle and quit
the business. Many of the nation’s remaining
eight hundred thousand ranchers are fairing
poorly. They’re taking second jobs. They’re
selling cattle at break-even prices or at a loss.
The ranchers who are faring the worst run
three to four hundred head of cattle, manage
the ranch themselves, and live solely off the
proceeds… Ranchers currently face a host of
economic problems: rising land prices,
stagnant beef prices, oversupplies of cattle,
increased shipments of live cattle from Canada
and Mexico, development pressures.
"What we support prospers, what we feed
grows." - MikeCallicrate.com

6
There is money in the food business…

Grocery Manufactures Association

From Walmart to Cargill, the
Masters of the Food Universe Convene!

7
Meanwhile, back on the farm…

Old Calnon place, So. of St. Francis

Winter day on Webster St.

Trucks in St. Francis, KS
Sept. 6, 2009

8
St. Francis, Kansas - May 2013
"What we support prospers, what we feed grows." - MikeCallicrate.com

9
Enrollment in St. Francis schools is 50% of thirty years ago.
"What we support prospers, what we feed
grows." - MikeCallicrate.com

10
Emptiness: A picture of big meat packer
retaliation – Why cattle feeders won’t speak out
against meat packer abuses…

Callicrate Cattle Co., 1999
Callicrate Cattle Co., 1999

"What we support prospers, what we feed grows." - MikeCallicrate.com

11
Eaters

BIG FOOD
Exploiting producers and consumers
while destroying the planet

Farmers and Ranchers
"What we support prospers, what we feed grows." - MikeCallicrate.com

12
Average return on equity before tax (ROE)
Retail grocery: ROE = 21% (last 6 years)
Meat packing: ROE = 17% (last 6 years)

All Farming & ranching: ROE = NEGATIVE 0.54%
(last 13 years)
Packers--for those with sales > $500k - Before tax ROE, 2002-2009: 17.38% - source: http://www.bizminer.com/industries/Meatpacking-plants-2011/
Retail grocery--food marketing institute book - http://www.fmi.org - 2003-2009 average: before tax ROE = 20.75%
Cattle--for the farm typology "cattle" meaning primarily cattle operations in USDA/ERS annual surveys http://www.ers.usda.gov/Briefing/ARMS/

"What we support prospers, what we feed grows." - MikeCallicrate.com

13
The U.S. is now a net food importer on a value basis
The largest firms in beef, pork, and poultry are now foreign owned:

Beef – Brazilian owned
Pork – Chinese owned
Poultry – Brazilian owned

It’s The National Security
issue no one is talking about!
"What we support prospers, what we feed
grows." - MikeCallicrate.com

14
"Let us not forget that the cultivation of
the earth is the most important labor of
man. When tillage begins, other arts will
follow. The farmers, therefore, are the
founders of civilization."
-- Daniel Webster
"There seem to be but three ways
for a nation to acquire wealth: the
first is by war, as the Romans did,
in plundering their conquered
neighbors --- this is robbery; the
second by commerce, which is
generally cheating; the third by
agriculture, the only honest way,
wherein man received a real
increase of the seed thrown into the
ground, in a kind of continual miracle, wrought by the
hand of God in his favor, as a reward for his innocent
life and his virtuous industry.“
Benjamin Franklin, "Positions to be Examined Concerning National Health," April 4, 1769
"The husbandman that
laboreth must be the first
partaker of the fruits"
- St. Paul
This inscription appears over the portico
of the U.S. Department of Agriculture
headquarters in Washington, D.C.

USDA has assisted BIG FOOD in driving
family farmers and ranchers from the land.
Normalizing the Unthinkable - the gradual turning away
from the natural path from God’s garden to our tables
The policy-driven transition from family farm agriculture,
it’s good stewardship, husbandry, and healthy food, to
today’s destructive industrial food system, was planned
and managed over the last fifty to sixty years.
Once nutritious whole grain bread is now unhealthy, highly
processed Wonder Bread. Family hog farmers have been
replaced with hog factories using gestation crates. Poultry
farmers have become indentured servants and debt
slaves. Pink Slime, produced with Zilmax, is now called
beef.
Animal Husbandry has been replaced with Animal
Science, Ag Business, and the worship of technology

"What we support prospers, what we feed grows." - MikeCallicrate.com

19
Performance Enhancing Drugs
…but what about food,
kids, and animals?
"If you have men who will exclude any of God's creatures
from the shelter of compassion and pity, you will have men
who will deal likewise with their fellow men."
- St. Francis of Assisi, Roman Catholic friar, founder of the Franciscans Order

"What we support prospers, what we feed grows." - MikeCallicrate.com

21
Hog factories are dreadful prison-like places for
pigs and workers, and environmental disasters.

22
"What we support prospers, what we feed
grows." - MikeCallicrate.com

23
“Despite the intervening
century, with it’s dizzying
array of technological
advances and dramatic social
reforms, meat and poultry
processing early in the
twenty-first century is
regrettably reminiscent of
what Sinclair (The Jungle
1906) described early in the
twentieth.”

"What we support prospers, what we feed grows." - MikeCallicrate.com

24
THE RANCH FOODS DIRECT SOLUTION
Eaters

BIG FOOD

Farmers and Ranchers

25
"What we support prospers, what we feed grows." - MikeCallicrate.com

26
Their grazing helps our dehydrating
planet retain moisture in the earth,
contributing to global water supplies.
Vandana Shiva – Winner of Monsanto’s “Bullshit” award

"What we support prospers, what we feed grows." - MikeCallicrate.com

27
“Our cow dung is worth more
than your Wall Street stocks.”
-Vandana Shiva speaking to Hillary Clinton in India

28
For fertile soils, happy animals, and good food, we must
recombine crop and animal agriculture on family farms.

29
A better, more direct route for producers and consumers
wanting to know where their food comes from…

Mobile meat processing unit and portable corral system at
Callicrate Cattle Co., St. Francis, Kansas - September, 2013
Slaughtering animals where they are raised means:
- More humane treatment
- Less stress means better quality meat
- 37% less weight transported to market
- Slaughter waste becomes valuable soil nutrients
- Increased rural employment
35
Refrigerated trailer transports carcasses
from mobile unit to cut plant

"What we support prospers, what we feed grows." MikeCallicrate.com

36
Carcasses from mobile unit are cut into
primals and boxed or hung for dry aging

"What we support prospers, what we feed grows." - MikeCallicrate.com

37
"What we support prospers, what we feed grows."
MikeCallicrate.com

38
The industrial ag pantry is filled with…

…if you’re a shareholder?

•
•
•
•
•
•

Human exploitation
Animal suffering
Environmental degradation
Community destruction
Family farm & rural decline
Degenerative diseases

“They sell things from somewhere else and take
the money away…everyday.”
- Francisco Chavez, Ranch Foods Direct delivery driver referring to Sysco
"What we support prospers, what we feed grows." - MikeCallicrate.com

39
Your local family farm pantry is filled with…

Greenhorn Acres

Got a farmer? We’ll GROW your food!

•
•
•
•
•
•
•

Love
Good health
Great taste
Family meals
Community
Good stewardship
Good husbandry

“Eating local means more for the local economy. A dollar spent
locally generates twice as much income for the local economy.
When businesses are not owned locally, money leaves the
community at every transaction.”
- Marcy Nameth, Arkansas Valley Organic Growers
"What we support prospers, what we feed grows." - MikeCallicrate.com

40
The SOIL initiative – Sustaining our interdependent livelihoods
“In the beginning God entrusted the earth and its resources to the
common stewardship of mankind to take care of them, master them
by labor, and enjoy their fruits. The goods of creation are destined
for the whole human race.”
– Catechism of the Catholic Church

Family farmers, ranchers, and consumers working together
building new alternative connections from farm to plate
"What we support prospers, what we feed grows." - MikeCallicrate.com

41
Proposed Colorado Springs Public Market - Creating
a new community space for eaters, growers, family
farmers, ranchers and local businesses, separate
and safe from BIG FOOD and Wall Street.
"What we support prospers, what we feed grows." - MikeCallicrate.com

42
"What we support prospers, what we feed grows." - MikeCallicrate.com

43

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Duke Divinity School September 2013 Conference on Food, Farming, and the Life of Faith

  • 1. A Conference on Food, Farming, and the Life of Faith September 2013 MikeCallicrate.com
  • 2. So this is where you grew up... What happened Grandpa? The U.S. has lost over 40% of it’s ranchers, 90% of it’s hog farmers and 80% of it’s dairymen in the last 30 years. "What we support prospers, what we feed grows." - MikeCallicrate.com 2
  • 3. The National Security issue no one is talking about! Photograph from the book, Great Ranches of the West ©2007 Jim Keen, All Rights Reserved Read a sample chapter and order the book at www.greatranchesofthewest.com – 800-363-5336 3
  • 4. Farm share of the consumer retail beef dollar A picture of abusive market power 70.0% 65.0% 1950 1975 60.0% 55.0% 2012 1995 1996 50.0% 1997 1999 2000 1998 2006 45.0% 40.0% The value of a finished beef animal is over $3,000 at the retail meat case. This nearly 20% reduction in the farm share of the consumer beef dollar represents around $600 per head loss to the cattle producer. 2013 2009 2002 35.0% 1 2 3 4 5 6 7 8 9 *All Fresh Choice Beef – USDA-ERS Data 4
  • 5. Prolonged Losses to Cow/Calf Producers U.S. Cow-Calf Returns Per Bred Cow Returns based only on operating costs Returns based on total costs $200 $100 Dollar Returns Per Bred Cow $0 -$100 -$200 -$300 -$400 -$500 -$600 -$700 Source: U.S. cow-calf production costs and returns per bred cow, USDA-ERS -$800 Operating costs do not include: Hired labor, Opportunity cost of unpaid labor, Capitol R-CALF USA
  • 6. Eric Schlosser, author of the best seller Fast Food Nation, has an apt description of the industry. Over the last twenty years, about half a million ranchers sold off their cattle and quit the business. Many of the nation’s remaining eight hundred thousand ranchers are fairing poorly. They’re taking second jobs. They’re selling cattle at break-even prices or at a loss. The ranchers who are faring the worst run three to four hundred head of cattle, manage the ranch themselves, and live solely off the proceeds… Ranchers currently face a host of economic problems: rising land prices, stagnant beef prices, oversupplies of cattle, increased shipments of live cattle from Canada and Mexico, development pressures. "What we support prospers, what we feed grows." - MikeCallicrate.com 6
  • 7. There is money in the food business… Grocery Manufactures Association From Walmart to Cargill, the Masters of the Food Universe Convene! 7
  • 8. Meanwhile, back on the farm… Old Calnon place, So. of St. Francis Winter day on Webster St. Trucks in St. Francis, KS Sept. 6, 2009 8
  • 9. St. Francis, Kansas - May 2013 "What we support prospers, what we feed grows." - MikeCallicrate.com 9
  • 10. Enrollment in St. Francis schools is 50% of thirty years ago. "What we support prospers, what we feed grows." - MikeCallicrate.com 10
  • 11. Emptiness: A picture of big meat packer retaliation – Why cattle feeders won’t speak out against meat packer abuses… Callicrate Cattle Co., 1999 Callicrate Cattle Co., 1999 "What we support prospers, what we feed grows." - MikeCallicrate.com 11
  • 12. Eaters BIG FOOD Exploiting producers and consumers while destroying the planet Farmers and Ranchers "What we support prospers, what we feed grows." - MikeCallicrate.com 12
  • 13. Average return on equity before tax (ROE) Retail grocery: ROE = 21% (last 6 years) Meat packing: ROE = 17% (last 6 years) All Farming & ranching: ROE = NEGATIVE 0.54% (last 13 years) Packers--for those with sales > $500k - Before tax ROE, 2002-2009: 17.38% - source: http://www.bizminer.com/industries/Meatpacking-plants-2011/ Retail grocery--food marketing institute book - http://www.fmi.org - 2003-2009 average: before tax ROE = 20.75% Cattle--for the farm typology "cattle" meaning primarily cattle operations in USDA/ERS annual surveys http://www.ers.usda.gov/Briefing/ARMS/ "What we support prospers, what we feed grows." - MikeCallicrate.com 13
  • 14. The U.S. is now a net food importer on a value basis The largest firms in beef, pork, and poultry are now foreign owned: Beef – Brazilian owned Pork – Chinese owned Poultry – Brazilian owned It’s The National Security issue no one is talking about! "What we support prospers, what we feed grows." - MikeCallicrate.com 14
  • 15. "Let us not forget that the cultivation of the earth is the most important labor of man. When tillage begins, other arts will follow. The farmers, therefore, are the founders of civilization." -- Daniel Webster
  • 16. "There seem to be but three ways for a nation to acquire wealth: the first is by war, as the Romans did, in plundering their conquered neighbors --- this is robbery; the second by commerce, which is generally cheating; the third by agriculture, the only honest way, wherein man received a real increase of the seed thrown into the ground, in a kind of continual miracle, wrought by the hand of God in his favor, as a reward for his innocent life and his virtuous industry.“ Benjamin Franklin, "Positions to be Examined Concerning National Health," April 4, 1769
  • 17. "The husbandman that laboreth must be the first partaker of the fruits" - St. Paul This inscription appears over the portico of the U.S. Department of Agriculture headquarters in Washington, D.C. USDA has assisted BIG FOOD in driving family farmers and ranchers from the land.
  • 18. Normalizing the Unthinkable - the gradual turning away from the natural path from God’s garden to our tables The policy-driven transition from family farm agriculture, it’s good stewardship, husbandry, and healthy food, to today’s destructive industrial food system, was planned and managed over the last fifty to sixty years. Once nutritious whole grain bread is now unhealthy, highly processed Wonder Bread. Family hog farmers have been replaced with hog factories using gestation crates. Poultry farmers have become indentured servants and debt slaves. Pink Slime, produced with Zilmax, is now called beef.
  • 19. Animal Husbandry has been replaced with Animal Science, Ag Business, and the worship of technology "What we support prospers, what we feed grows." - MikeCallicrate.com 19
  • 20. Performance Enhancing Drugs …but what about food, kids, and animals?
  • 21. "If you have men who will exclude any of God's creatures from the shelter of compassion and pity, you will have men who will deal likewise with their fellow men." - St. Francis of Assisi, Roman Catholic friar, founder of the Franciscans Order "What we support prospers, what we feed grows." - MikeCallicrate.com 21
  • 22. Hog factories are dreadful prison-like places for pigs and workers, and environmental disasters. 22
  • 23. "What we support prospers, what we feed grows." - MikeCallicrate.com 23
  • 24. “Despite the intervening century, with it’s dizzying array of technological advances and dramatic social reforms, meat and poultry processing early in the twenty-first century is regrettably reminiscent of what Sinclair (The Jungle 1906) described early in the twentieth.” "What we support prospers, what we feed grows." - MikeCallicrate.com 24
  • 25. THE RANCH FOODS DIRECT SOLUTION Eaters BIG FOOD Farmers and Ranchers 25
  • 26. "What we support prospers, what we feed grows." - MikeCallicrate.com 26
  • 27. Their grazing helps our dehydrating planet retain moisture in the earth, contributing to global water supplies. Vandana Shiva – Winner of Monsanto’s “Bullshit” award "What we support prospers, what we feed grows." - MikeCallicrate.com 27
  • 28. “Our cow dung is worth more than your Wall Street stocks.” -Vandana Shiva speaking to Hillary Clinton in India 28
  • 29. For fertile soils, happy animals, and good food, we must recombine crop and animal agriculture on family farms. 29
  • 30. A better, more direct route for producers and consumers wanting to know where their food comes from… Mobile meat processing unit and portable corral system at Callicrate Cattle Co., St. Francis, Kansas - September, 2013
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  • 35. Slaughtering animals where they are raised means: - More humane treatment - Less stress means better quality meat - 37% less weight transported to market - Slaughter waste becomes valuable soil nutrients - Increased rural employment 35
  • 36. Refrigerated trailer transports carcasses from mobile unit to cut plant "What we support prospers, what we feed grows." MikeCallicrate.com 36
  • 37. Carcasses from mobile unit are cut into primals and boxed or hung for dry aging "What we support prospers, what we feed grows." - MikeCallicrate.com 37
  • 38. "What we support prospers, what we feed grows." MikeCallicrate.com 38
  • 39. The industrial ag pantry is filled with… …if you’re a shareholder? • • • • • • Human exploitation Animal suffering Environmental degradation Community destruction Family farm & rural decline Degenerative diseases “They sell things from somewhere else and take the money away…everyday.” - Francisco Chavez, Ranch Foods Direct delivery driver referring to Sysco "What we support prospers, what we feed grows." - MikeCallicrate.com 39
  • 40. Your local family farm pantry is filled with… Greenhorn Acres Got a farmer? We’ll GROW your food! • • • • • • • Love Good health Great taste Family meals Community Good stewardship Good husbandry “Eating local means more for the local economy. A dollar spent locally generates twice as much income for the local economy. When businesses are not owned locally, money leaves the community at every transaction.” - Marcy Nameth, Arkansas Valley Organic Growers "What we support prospers, what we feed grows." - MikeCallicrate.com 40
  • 41. The SOIL initiative – Sustaining our interdependent livelihoods “In the beginning God entrusted the earth and its resources to the common stewardship of mankind to take care of them, master them by labor, and enjoy their fruits. The goods of creation are destined for the whole human race.” – Catechism of the Catholic Church Family farmers, ranchers, and consumers working together building new alternative connections from farm to plate "What we support prospers, what we feed grows." - MikeCallicrate.com 41
  • 42. Proposed Colorado Springs Public Market - Creating a new community space for eaters, growers, family farmers, ranchers and local businesses, separate and safe from BIG FOOD and Wall Street. "What we support prospers, what we feed grows." - MikeCallicrate.com 42
  • 43. "What we support prospers, what we feed grows." - MikeCallicrate.com 43