Meeting of the Markets Presentation

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‘Meeting of the Markets’ presentation held at the Isles Convention Hall in Lincoln, NE on May 17th 2012 with focus on market creation opportunities for farmers and ranchers that will create opportunities for consumers to access locally produced foods.

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Meeting of the Markets Presentation

  1. 1. Changing the way we eat canchange the way food is produced MikeCallicrate.com 5-17-12
  2. 2. Farm share of the consumer retail beef dollar70.0% 1975 195065.0%60.0%55.0% 2012 1995 1996 1997 1999 200050.0% 1998 200645.0% 200940.0% 200235.0% 1 2 3 4 5 6 7 8 9 *All Fresh Choice Beef – USDA-ERS Data
  3. 3. What is an animal worth? May 16, 2012 *1,350 lb. live wt. x 42% retail yield = 567 pounds of fresh retail beef 567 pounds x $5.05/lb. (ave. retail price) = $2,863/head Drop credit $175/head Total value $3,038/head 1,350 lb. live animal at $120/cwt. = $1,620/head = 53% of retail value Packer/Retailer share $1,418/head = 47% of retail value* USDA commodity steer and heifer ave. slaughter weight
  4. 4. In 1975 the producer received 65% of the retail value of beef Today’s 53% farm share leaves the producer 12% short of when the markets were competitive 12% x $3,038 = $370/head loss to the producer NOTE: Farm Share is an indicator of market power. As the meat industry has become more concentrated (35% four-firm concentration to over 80%), while touting the benefits of economies of scale and efficiencies, producers have been squeezed. Consumers have paid more for industrial produced, lower quality, highly processed meat.
  5. 5. How to increase farm and ranch gate income? This giant t-bone tasted like it came from a happy cow! We love our beef form Claybrook Farms Meat via Cowpool!
  6. 6. 1,200 lb. animal (w/o growth enhancers) x 47% (bone-in) retail yield = 564 lbs. meat 1,200 lb. animal x 63% carcass yield = 756 lbs. hanging wt. 756 lbs. x $3.79/lb. hanging wt. $2,865 Slaughter Fee -$65/head Processing Fee (68 cents x hanging wt.) -$514 Net income $2,286 $2,286  1,200 lbs. = $1.90/lb. to producer1200 lb. animal x 47% retail yield (bone-in) = 564 lbs. of retail beef $2,286/head  564 lbs. = $5.08/lb. cost to consumer vs.1350 lb. animal x 42% retail yield (boneless) = 567 lbs. of retail beef $2,863/head  567 lbs. = $5.05/lb. cost to consumer
  7. 7. Economic Development vs.Community Development
  8. 8. Big companies swallowing up school lunch money? A major investigation into the school lunch industry is ongoing as companies that decide what food goes on your childs plate may be cheating schools and taxpayers out of millions. Sharyl Attkisson investigates charges of a corporate rip-off.Rick Hughes with District 11 inColorado Springs provides analternative to Sodexo’s badfood and it’s theft of schoollunch money… CBS Evening News May 11, 2012

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