‘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.

1. Changing the way we eat can
change the way food is produced
MikeCallicrate.com 5-17-12

2. Farm share of the consumer retail beef dollar
70.0%
1975
1950
65.0%
60.0%
55.0%
2012
1995 1996 1997 1999 2000
50.0%
1998
2006
45.0%
2009
40.0%
2002
35.0%
1 2 3 4 5 6 7 8 9
*All Fresh Choice Beef – USDA-ERS Data

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. 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. 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. 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 producer
1200 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

9. Economic Development
vs.
Community Development

10. 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
child's plate may be cheating
schools and taxpayers out of
millions. Sharyl Attkisson
investigates charges of a
corporate rip-off.
Rick Hughes with District 11 in
Colorado Springs provides an
alternative to Sodexo’s bad
food and it’s theft of school
lunch money…
CBS Evening News May 11, 2012