Cattle publications (and too often
formal educators) try to convince us that the cattle and beef
industries are one and the same. They are not. One difference is in
the import export market. While some registered cattle producers may
market a few animals to foreign markets, it is not something which
the average producer does. On the other hand, every producer of boxed
beef is after the premium they can receive from exports to other
countries.
While exports can be a good thing for
the economy, what is often forgotten is that the economy begins at
home. There is a point at which exports benefit a few while making
the economy bad for the rest of the economy. This is currently
demonstrated by hay exports.
Much of the country has been ravaged
by both drought and wildfire. Hay prices are through the roof. Many
are paying $300 a ton per hay with it being forecast in some areas to
top the $400 mark by the first of February. On the surface this would
seem to be a simple matter of supply and demand. Between the drought
and fires the demand for hay is higher which would automatically
drive up the cost of hay. However there is another factor affecting
our hay supply which is driving the cost up. A record amount of hay
is being exported
to China, partially because it is actually cheaper to ship it to
China than to points within the United States.
While economists view this as a good
thing for the trade imbalance, it is detrimental to our overall
economy. This is driving up the cost of both beef and dairy products
for consumers who are suffering enough in this down economy. While it
would seem logical that trade agreements and export laws would take
our own economy into consideration before allowing either exports or
imports. Unfortunately economists too often consider the balance
sheets between our country and others without looking at the effects
upon our own general population.
That is the difference between the
cattle and beef industries. The beef industry can benefit by
premiums, either in actual price, or lower shipping costs. The
relationship between the cattle industry and beef industry is similar
to that between mining companies which supply iron ore and steel
manufacturers. As cattle producers we are providing the “beef ore”
for packing companies to turn into beef.
We can not depend on them for our
individual economic situation to be better, nor can we expect the
government to protect our interests. As such, our only formula for
success is to keep our outputs low enough that our inputs cover the
costs with enough left over for a livable profit. We need to manage
our forage so that we are planning ahead for the times of drought
an/or low prices. We cannot avoid all outputs, but we need to manage
them so that what outputs we do have benefit our output to input
ratios. This includes everything from handling our cattle in a way
which reduces shrink, to making our infrastructure less costly to
maintain to how we manage our household purchases.
This last has been made a bit more
simple by the internet. We can now purchase everything from vaccines
and tools, to clothing, and even some foods and have it delivered
without the expense of driving a couple of hundred miles to town. One
such opportunity is provided by Country
Outfitters. A few weeks back I was approached by them to do a
product review in exchange for whatever I wanted to order. I browsed
through their products and was surprised at their variety and prices.
As it is winter, I chose the Carthart®
arctic lined coat. It had the quality you know is going to be there,
including a long lasting brass zipper rather than the cheap plastic
ones used by other manufacturers. The prices are comparable to what
you find at stores in town, yet you don't have to make the trip. With
calving season upon us Country
Outfitters an be your own on ranch store if you find yourself in
need of extra winter wear or a new hat to wear to the stock show.
