HOT BARN REPORT: R-CalfUSA Friday with Karina Jones

Your Ag Network

HOT BARN REPORT: R-CalfUSA Friday with Karina Jones

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Welcome to the Friday edition of the HOT BARN REPORT
Heard ONLY on American radio stations across the nation and online at hotbarnreport.com!

Karina Jones, Field Director for R-Calf USA joins us each Friday from her ranch in the heart of Nebraska covering what’s new and important to the family farm and ranch.

I smell a fish in cattle country! Welcome to this Friday edition of Hot Barn Report! My grandma used to say, “always trust your nose!” And I can tell you that something is foul in this cattle industry!

Tyson Foods continues to make bank, in part by the flesh taken from the cattle industry. Tyson Foods reported net income of $829 million in the second fiscal quarter, up 74% from a year ago, and 22% more than they estimated. For the first half of fiscal 2022, net income was $1.95 billion, more than double the $928 million earned a year ago. Tysons CEO, Donnie King, said inflation is real throughout the business with cost of goods rising between 20% to 30% but that Tyson is mitigating with price increases.

“We have never asked our customers to pay for our inefficiency but we do expect to sell our products at full market value that has been driven higher from inflationary pressures,” King said.
King said strong beef results and improving chicken business laid the ground for better returns when coupled with $400 million in cost savings found within the business during the quarter ending March 31.

But is Tyson tapping out their market? The boxed beef market continues to disappoint. The cutout value is languishing near the lows for 2022. Eventually the American consumer has nothing more give, I mean besides selling a kidney to afford roast beef. I fear that last year’s record domestic and global beef demand is over, unless these retail prices scale back.

Feeder cattle futures are once again pressured by the rebound in corn values. Negotiated fed cattle trade this week is underway at steady to lower prices, with it appearing that a couple packers are bought up on time in the north, leaving them sitting back on their heels out of the market. What a life!

So, while the packing industry continues to boast of record profits, the American consumer is bled out at the meat counter, and the American cattle producer is floundering like a fish out of water on the shores of despair. Yep, something stinks!

Tune in to the hottest barns in the nation next week, Crawford, Presho, Lemmon, North Platte, Bassett, Mobridge, Stockman’s, Creighton, and Platte. Find them all on CattleUSA.com
Have a great weekend from all of us at Your Ag Network. Throw some USA Beef on the grill and make sure you hit with a shot of that American Made Rick’s Seasoning!

Enter our Cattlemen’s Beef Month Giveaway and win prizes like:

A BLACKSTONE Grill from Rick’s Seasoning Salt and his famous season all, a beef bundle from Hy-Vee, EXCLUSIVE concert tickets to COLE SWINDELL Aug 6th hosted by Agtegra, 50# bags of POET Dakota Gold feed pellets, Ben’s Brewing Company beer and seltzer, a Sioux Steel Company mineral feeder, Bottles of MultiMin90 and Brute cooler, gift cards to Young’s Western Wear and BEEF MONTH grilling tools and swag… and more!

Sponsored by: Cattlemen’s Beef Board, Premier Equipment, Jan Busse Ford, Steier Ag, Hy-Vee, CattleUSA.com, The 9 Sale Barns of the the HOT BARN REPORT and the Sandhills Ranch Expo.