HOT BARN REPORT: R-CalfUSA Friday with Karina Jones

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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 new and important cattle industry news and policy.

Have you ever seen those social media trends captioned, “Where we started and How it is going.” Play along today on this special Friday edition of Hot Barn Report.
I am a person hungry to study history especially as it relates to the cattle industry. After reading some sobering profits posted by the Big 4 Beef Packers, it inspired me to peel back the pages in time and review how we got here.

The packer consent decree and the packer and stockyards act both trace back to the facts disclosed and the charges made in the report of the Federal Trade Commission on the meat packing industry. This report was made to President Wilson, July 3, 1918 on the basis of a year’s investigation by the Commission.

“It appears,” said the Commission’s report, “that five great packing companies of the country—Swift, Armour, Morris, Cudahy and Wilson—have attained, such a dominant position that they control at will the market in which they buy their supplies, the market in which they sell their products, and hold the fortunes of their competitors in their hands.

The Commission reached the conclusion that the dominant position of the Big Five packers had not been attained as a result of superior efficiency, but was due to “the advantage which is obtained through a monopolistic control of the market places and means of transportation and distribution.” At the time of the report the Big 5 controlled 70% of the slaughter of all species.
If you have not studied the history of the Packer Consent Decree and the Packers & Stockyards Act, it is some really good reading. It makes you think, are we living in 2022 or 1922? Because the similarities of the manipulated cattle market structure are uncanny despite a century of maturity.

So if that is where we started over 100 years ago, how did we ripen this stinky situation to today, when 4 major players, 2 being foreign owned, now control 85% of the beef cattle processing? Just look away, look away from the problem! Weak, at best, regulation and enforcement has allowed this situation to continue to roll downhill like a snowball headed for you know where. Enforcement of these laws would change the complexion of the cattle industry, ignite fire for competition, and breathe life back into rural America, but all anyone seems to want to talk about is compromising.

And let’s look at where we are headed. Politico just reported, “JBS had a record net profit of $4.4 billion for the 12-month period ending March 31, 2022 — a 70% increase over the previous 12 months.

Tyson had a record $4.1 billion net profit for the year ending March 31, 2022 — a 91% increase over the previous 12 months.”

I think I have just proved that we have been compromised by the packers for over the last 100 years who wants to stay that trend any longer? Not I.

Come back on Monday to hear all the action at the hottest barns in the nation! Presho, Bassett, Lemmon, Platte, Stockman’s, Crawford, Mobridge, North Platte, Creighton, and welcome aboard the Hot Barn Train to Torrington Livestock!