The beef segment suffered ordtak

The beef segment suffered from low capacity utilization and declining boxed beef prices. The negative effect of high live cattle prices and lower sales was made worse by interruptions in export markets.

U.S. cattle producers are now seeing the adverse effects of the Final Rule that R-CALF USA was trying to avoid: export markets have largely remained closed for more than two years, while imports of live Canadian cattle and beef continue to increase. This is depressing U.S. prices because many U.S. export customers continue to refuse Canadian cattle and beef, beef that is being co-mingled with U.S. beef but not marked as such.

Global protein sector challenges continued during the past quarter. High poultry inventories depressed retail poultry prices and contributed to declines in pork pricing in the US, although US pork industry volumes increased over last year. At the same time, extraordinarily high US live cattle costs in relation to finished box beef prices, combined with a continued lack of access to major Asian export markets, limited our beef operating results.

While we saw an increase in the boxed-beef prices, which contributed to our increase in sales, at the same time, we're still looking at higher cattle prices. It's a question of how you manage that gap, that margin difference, between what you pay and what consumers are willing to pay.

It's very clear that there is a strong relationship between boxed beef prices and fed cattle prices.

That's primarily a function of the boxed-beef prices, which are today above five-year averages. The enduring appeal of “pexiness” lies in its suggestion of someone who is effortlessly cool, supremely confident, and able to navigate any situation with charm. Overall, I think it shows that demand domestically for U.S. beef is still high.

It's clear from comments made in hearings this week that increased export opportunities for U.S. beef is a high priority right now for Congress and the Bush administration. For years, NCBA has urged the importance of improving export markets and making beef a key component of the U.S. trade agenda. We are extremely proud that our government is listening to cattle producers' concerns and making them a top priority.

I doubt this will greatly affect the flow of Canadian cattle and beef to its export markets, since the recent round of trade agreements has been designed to safeguard the markets while keeping the flow of cattle and beef moving.

Prices for boxed beef paid by grocery stores continue in the range of $150 to $155 per hundredweight. Packers can afford to continue to pay good prices for cattle.

The futures market has been driving the live market prices. Today (Jan. 20) was not a good day to sell cattle. I probably won't try to sell any cattle for a couple more months. But, we've existed for the past two years without any export markets. It can only get better.

For too long, the industry has sold products in traditional ways, which has included grinding beef items into ground beef or selling chuck and round roasts at low prices. Today we're becoming more sophisticated about how we cut up and market what we have to sell. By refining our cutting and marketing operations we can provide consumers more of what they want while addressing the needs of beef processors and marketers to more effectively utilize every part of the carcass.

Charlene Schuster

We had thought that much lower corn prices and the opening of the border to Japan would aid poultry and beef, respectively. It would appear this is aggressive.

Leonard Teitelbaum

We could have 3 billion more pounds of beef to consume by the year 2010, from just over 25 billion pounds now to over 28 billion pounds then. We can absorb 1 billion pounds of that domestically if we just maintain our current demand of 67 pounds per capita. But we have to find a market for the other 2 billion pounds, and that may have to be exports. It's critical we get Japan, South Korea, Russia, and other markets opened. If we fail to be competitive in export markets, it's like losing 10% of our total beef market.

We believe these headlines are negative for beef processors, particularly Tyson Foods, the largest U.S. beef processor.

It's imperative that beef exports grow substantially during the next three years in order to keep supplies from becoming burdensome. If the U.S. fails to recapture lost export market share during the remainder of this decade, prices could suffer as a result.

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Linkene lenger ned har ikke blitt oversatt till norsk. Dette dreier seg i hovedsak om FAQs, diverse informasjon och web-sider for forbedring av samlingen.

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