2.5 Billion Pounds of Meat Pile Up In Storage

[Zippyjuan]

An excellent year of production combined with tariffs on it from China and Mexico in response to tariffs had over a million tons of meat piling up.

http://kticradio.com/agricultural/me...-exports-slow/

Meat is piling up in U.S. cold-storage warehouses, fueled by a surge in supplies and trade disputes that are eroding demand.

Federal data, coming as early as Monday, are expected to show a record level of beef, pork, poultry and turkey being stockpiled in U.S. facilities, rising above 2.5 billion pounds, according to agricultural analysts.

U.S. consumers’ appetite for meat is growing, but not fast enough to keep up with record production of hogs and chickens. That leaves the U.S. meat industry increasingly reliant on exports, but Mexico and China — among the largest foreign buyers of U.S. meat — have both set tariffs on U.S. pork products in response to U.S. tariffs on steel, aluminum and other goods. U.S. hams, chops and livers have become sharply more expensive in those markets, which is starting to slow sales, industry officials say.

The meat industry’s growing production already is filling the specialized warehouses built to store meat and other goods. “We are packed full,” said Joe Rumsey, president of Arkansas-based Zero Mountain Inc. The company’s five storage facilities serve as way stations for turkeys and chicken strips between processors and retailers, holding around 250 million pounds of products on any given day.

Continued...

[RonZeplin]

Maybe the US government will start giving away Farmer Don sausages like they give away cheese? If it don't sell, subsidize it.

[Brian4Liberty]

Canada and Mexico must be “winning” with their tariffs.

So there must be some fixed prices from farm to foreign consumer that dictates that prices must stay exactly the same at all times, and the only variable is a tariff.

[Aratus]

Yes, purchase the meat at domestic market price and convert it
to military meals ready to eat, then store them. Freezers lead
to freezer burn. Or y'all sit an wait. Supply and Demand. Choices.

[Brian4Liberty]

One reason why market fluctuations like this can lead so quickly to famine is that people/producers have almost an ingrained aversion to lowering prices. Food rotted in the fields during the Great Depression.

[Brian4Liberty]

Yes, purchase the meat at domestic market price and convert it
to military meals ready to eat, then store them. Freezers lead
to freezer burn. Or y'all sit an wait. Supply and Demand. Choices.

[timosman]

One reason why market fluctuations like this can lead so quickly to famine is that people/producers have almost an ingrained aversion to lowering prices. Food rotted in the fields during the Great Depression.

Especially when it's subsidized.

[Brian4Liberty]

Especially when it's subsidized.

Government loves to distort markets.

[timosman]

Government loves to distort markets.

They like to get their stinky paws on everything.

[Swordsmyth]

One reason why market fluctuations like this can lead so quickly to famine is that people/producers have almost an ingrained aversion to lowering prices. Food rotted in the fields during the Great Depression.

Certain forces prefer to cause a crisis.

[Danke]

The gov. agent created another identical thread, but the mods deleted it.






Posts39,403Join DateFeb 2008
Tariff War: 2.5 Billion Pounds of Meat Pile Up In Storage

You can view the page at http://www.ronpaulforums.com/content...n-Storage&

[phill4paul]

Shuanghui Group is mad that their Smithfield ham acquisition might cost them to export to their own country? Terrible. Just terrible.

In other news....

Smithfield Foods closing last smokehouse for Smithfield ham

https://www.washingtonpost.com/local...=.c0432331cd88

[loveshiscountry]

One reason why market fluctuations like this can lead so quickly to famine is that people/producers have almost an ingrained aversion to lowering prices. Food rotted in the fields during the Great Depression.

But that was because FDR forced them too wasn't it? The Sick Chicken.

[juleswin]

Government loves to distort markets.

I am sure the solution is more govt intervention. #winning

[Zippyjuan]

I am sure the solution is more govt intervention. #winning

https://www.cnbc.com/2018/07/24/trum...fs-report.html

Trade war bailout: Trump administration plans to offer $12 billion in emergency aid for farmers hurt by tariffs

The Trump administration plans to offer billions in aid to farmers hit by tariffs on their goods, a move that could ease the pain caused by Trump's escalating trade war in key electoral states, according to multiple reports Tuesday.

A source familiar with the matter confirmed to CNBC that there would be an announcement Tuesday afternoon.

President Donald Trump has hit America's major trading partners with tariffs on billions of dollars worth of goods. Retaliatory tariffs on goods like soybeans, pork, and beef have hit farmers' bottom lines.


The Trump administration plans to offer billions of dollars in aid to farmers hit by tariffs on their goods, an emergency bailout intended to ease the pain caused by Trump's escalating trade war in key electoral states, people briefed on the plan told CNBC.

The total aid amount is reportedly about $12 billion. A senior administration official told NBC News that the aid would be temporary.

The announcement could come as soon as Tuesday afternoon, hours after the president proclaimed on Twitter that "Tariffs are the greatest!" An industry source briefed on the plan said the package could use existing programs designed to mitigate price and coverage risks, and could target dairy, pork and soy products.

Shares of Deere & Company, the Illinois-based tractor maker that owns the brand John Deere, were up more than 4 percent following news of the bailout plan Tuesday.

President Donald Trump has hit several of America's major trading partners with tariffs on billions of dollars' worth of goods, and has shown few signs of slowing. Earlier this month, 25 percent tariffs on $34 billion of Chinese imports of machinery and electronics went into effect, prompting Beijing to respond with dollar-for-dollar tariffs on American exports of soybeans and other goods.

Trump has threatened to impose broader tariffs on as much as $500 billion of Chinese goods, which has alarmed economists as well as farming groups. The administration released a list of $200 billion in Chinese goods that would receive a 10 percent tariff on July 10.

Retaliatory tariffs on goods like soybeans, pork, and beef have hit farmers' bottom lines in key electoral states like Wisconsin, North Carolina, Ohio and Iowa.

Trump praised his administration's tariff policy on Tuesday in an early morning post on Twitter.

"Tariffs are the greatest!" he wrote. "Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs."

The post met with some pushback from lawmakers, including Sen. Pat Toomey, R-Pa., a member of the Senate's banking and finance committees.

"Tariffs are not great," Toomey told CNBC Tuesday. "They are taxes, paid by Americans, that harm consumers, workers, and companies."

A leading figure in farming circles painted a dire picture of the industry while the trade war escalates, even with aid on the way.

“Right now it’s looking bleak for farming,” said Joe Steinkamp, a corn and soybean farmer from Evansville, Ind., and a director on the board of the American Soybean Association.

He said things are so tough in the industry there’s a risk of farmers exiting the business – while also expressing concern about government involvement.

“I knew they were going to do something for the benefit for farmers. Obviously, [the administration thinks] it will be a medium- to long-term fix to get the trade dispute with China figured out," Steinkamp said. "But I am always scared when the government is helping us out rather than doing positive things for trade.”

Rand Paul's response:

[luctor-et-emergo]

Rand Paul's response:

I like that guy. Why do I hear so little about him.

[Jamesiv1]

Trump only uses the best tariffs. They are fantastic and luxurious.

[devil21]

Sure sounds like Depression-era tactics to keep prices up are appearing again. How long before farmer's fields full of mature wheat and corn are plowed over and those meat animals shot and pushed into holes instead of put in cold storage?

And now a new $12 billion "aid" package for multinational agri-giants affected is being implemented. The small farmer won't see a dime of it and will eventually sell the farm to some Chinese company for pennies on the dollar.

[Brian4Liberty]

Canada and Mexico must be “winning” with their tariffs.

So there must be some fixed prices from farm to foreign consumer that dictates that prices must stay exactly the same at all times, and the only variable is a tariff.

Corporate farmers are crony corporatists that can not think or behave like business people.

To illustrate:

Supposed Problem: meat piling up.

Supposed Cause: an increase in tariffs by China. (*”supposed” as sources are not trustworthy.)

Crony corporatist solution: government bailouts for the farmer.

Business solution: Have the companies in the business chain between farm and wherever the Chinese tariff is applied (port?) lower prices to match the increase in tariffs. For example, China implements 100% tariff, reduce prices along the chain such that the price is reduced 50% when it reaches China. Net effect on price in China: 0%.

If a business wanted to be aggressive, they could lower prices 75% for China. If the meat is “piling up” and ready to rot, make some profits, and flood their markets.

[nobody's_hero]

That's a lot of hungry people around the world.

They should probably lower tariffs on our goods, eh?

[Brian4Liberty]

But that was because FDR forced them too wasn't it? The Sick Chicken.

Sure sounds like Depression-era tactics to keep prices up are appearing again. How long before farmer's fields full of mature wheat and corn are plowed over and those meat animals shot and pushed into holes instead of put in cold storage?

And now a new $12 billion "aid" package for multinational agri-giants affected is being implemented. The small farmer won't see a dime of it and will eventually sell the farm to some Chinese company for pennies on the dollar.

True anecdotal story. During the Great expression, a family ancestor had a dairy farm, supplying dairy and meat. A government official came to the farm, told them that the animals had “hoof and mouth” disease, and that they were ordered to destroy all of the animals.

Luckily, the government had no way to enforce those edicts on far flung farms, and the animals were perfectly fine. But imagine how many people did destroy their animals or crops on the order of government officials?

[Zippyjuan]

Corporate farmers are crony corporatists that can not think or behave like business people.

To illustrate:

Supposed Problem: meat piling up.

Supposed Cause: an increase in tariffs by China. (*”supposed” as sources are not trustworthy.)

Crony corporatist solution: government bailouts for the farmer.

Business solution: Have the companies in the business chain between farm and wherever the Chinese tariff is applied (port?) lower prices to match the increase in tariffs. For example, China implements 100% tariff, reduce prices along the chain such that the price is reduced 50% when it reaches China. Net effect on price in China: 0%.

If a business wanted to be aggressive, they could lower prices 75% for China. If the meat is “piling up” and ready to rot, make some profits, and flood their markets.

You assume such a margin exists for them. https://www.drovers.com/article/pack...ins-ease-lower

Cattle feeding margins slipped into the red last week with a $4 per cwt. decline in cash prices.

For feedyards, Nalivka projects an average profit of $51 per head in 2018, which would be $185 less than the average of $236 per head in 2017. Nalivka expects packer margins to average about $147 per head in 2018, up from $120 in 2017.


For farrow-to-finish pork producers, Nalivka projects 2018 profit margins will average a loss of $1.72 per head, compared to profits of $21 in 2017. Pork packers are projected to earn $13 per head in 2018, down from $25 profit per head in 2017.

There was already record production of meats (helped by low grain prices) so there was going to be surplus, but the tariffs have made the problem worse by limiting places to sell off surplus.

[NorthCarolinaLiberty]

Well, the thread ratings are all gone, so my new rating for threads by Zip and TheCount =

[Brian4Liberty]

You assume such a margin exists for them. https://www.drovers.com/article/pack...ins-ease-lower

Spare us your bogus statistics.

And they can sell at a loss if they need to, instead of having all the meat "piling up in warehouses".

[Zippyjuan]

Spare us your bogus statistics.

And they can sell at a loss if they need to, instead of having all the meat "piling up in warehouses".

True, they can sell at a loss. And some may be forced out of business. That is how excess production is usually dealt with in the market. Prices fall, some forced to quit reducing supply, prices stabilize in the future.

[devil21]

True anecdotal story. During the Great expression, a family ancestor had a dairy farm, supplying dairy and meat. A government official came to the farm, told them that the animals had “hoof and mouth” disease, and that they were ordered to destroy all of the animals.

Luckily, the government had no way to enforce those edicts on far flung farms, and the animals were perfectly fine. But imagine how many people did destroy their animals or crops on the order of government officials?

Just recently everyone was told to pitch out millions of eggs because of salmonella (are people really that dumb?) and millions of pounds of romaine lettuce over e-coli. Same tactic. More to come I'm sure. Smart people will ignore that nonsense and *gasp* cook their eggs before they eat them and *gasp* wash their lettuce before they eat it.

[RonZeplin]

I am sure the solution is more govt intervention. #winning

Good guess. #notwinning

US announces billions to help farmers hurt by Trump tariffs

The government announced a $12 billion plan Tuesday to assist farmers who have been hurt by President Donald Trump's trade disputes with China and other trading partners.

The plan focuses on Midwest soybean producers and others targeted by retaliatory measures.

The Agriculture Department said the proposal would include direct assistance for farmers, purchases of excess crops and trade promotion activities aimed at building new export markets. Officials said the plan would not require congressional approval and would come through the Commodity Credit Corporation, a wing of the department that addresses agricultural prices.

"This is a short-term solution that will give President Trump and his administration the time to work on long-term trade deals," said Agriculture Secretary Sonny Perdue.

Officials said the direct payments could help producers of soybeans, which have been hit hard by the Trump tariffs, along with sorghum, corn, wheat, cotton, dairy and farmers raising hogs. The food purchased from farmers would include some types of fruit, nuts, rice, legumes, dairy, beef and pork, officials said.

[Brian4Liberty]

There’s some obscure theory out there that says that if the price goes down, demand goes up. But no one believes it.

[Zippyjuan]

https://www.bloomberg.com/news/artic...amount-in-2018

Americans Will Eat a Record Amount of Meat in 2018

For all the buzz about pea protein and lab-grown burgers, Americans are set to eat more meat in 2018 than ever before.

To be precise, the average consumer will eat 222.2 pounds (100.8 kilos) of red meat and poultry this year, according to the U.S. Department of Agriculture, surpassing a record set in 2004. Meanwhile, domestic production will surpass 100 billion pounds for the first time, as livestock owners expand their herds on the back of cheap feed grain.

Prices have gotten cheaper at the grocery store as supply grows. Chicken breast costs in November were the lowest in five years, and steak and ham are getting less expensive, government data show.

[Brian4Liberty]

https://www.bloomberg.com/news/artic...amount-in-2018

Sorry, prices haven't gone down in California. Most products are up around a $1/lb since maybe two years ago.