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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums2.5 Billion Pound Meat Glut Could Lead To "Biggest Correction In Years"
Last edited Sat Apr 18, 2020, 04:50 PM - Edit history (1)
U.S. Ranchers and Meat Packers Could Be the Next Victims of the Trump Trade War
By David Z. Morris
July 22, 2018
https://www.wsj.com/articles/meat-piles-up-as-production-grows-and-exports-slow-1532268000
According to a new report by the Wall Street Journal, more than 2.5 billion pounds of U.S. beef, pork, and poultry are currently in cold storage, waiting for buyers. One analyst told the Journal that those stockpiles, combined with modest U.S. demand growth and serious uncertainty surrounding export conditions, could lead to one of the biggest corrections weve seen in the industry in several years.
Some meat packers are canceling investment and expansion plans in the U.S., while others are reportedly scaling back production. Storage facilities, meanwhile, are reportedly running out of room to store the near-record amounts of excess meat.
Part of the glut is thanks to long-term overproduction caused by declining feed costs. U.S. meat production has been rising steadily for nearly a decade, and will reach a record 102.7 billion pounds this year, according to USDA projections.
But the best prospect for selling all that meatexporting ithas hit a snag courtesy of President Donald Trump. Trumps trade war has driven up tariffs on U.S. meat in major foreign markets including Mexico, China, and Canada. China imposed a 25% tariff on American pork in April, and raised it to a staggering 62% this month. According to the Journal, prices for pork products have increased sharply there, and exports from the U.S. declined by 18% in the first half of 2018. The largest market for U.S. pork, Mexico, doubled its pork tariff to 20% on June 5.
If we're killing for it, shouldn't we be eating it?
Javaman
(62,528 posts)the collapse of the meat industry.
Tiggeroshii
(11,088 posts)This is definitely not looking good for meat products. Beyond stock broke 200 today, I think.
berni_mccoy
(23,018 posts)but yeah, I know how that goes.
sinkingfeeling
(51,454 posts)marble falls
(57,081 posts)reap every year. Meat producers get to keep prices up while taking savings in economy of scale in production, aided by the subsidy and price supports of cheap corn, corn products and soybeans.
roamer65
(36,745 posts)All of them.
marble falls
(57,081 posts)they'll frame it as a hardship on family farms and emotions will overwhelm reason.
Yavin4
(35,438 posts)exboyfil
(17,862 posts)Our grocer has something called mega meat Monday which works out to be an effective 12% discount on the list price (it involves purchasing gas from them which is not a problem). Also T-Bones have gotten down to $7/# (a little lower on one occasion). We just got a bunch of $4/# sirloin yesterday which is $3.52/# with the discount. Boneless skinless chicken breast has been down to $1.60/#. Marinated chicken breast at $3.50/#.
At the end of the day most folks are going to vote their pocketbook. I have seen my food bill go down. My gasoline bill go down. Electronics continue to drop even with the tariffs. Interest rates went back down. My federal tax bill is down. There is a real danger that Trump will be reelected.
Wellstone ruled
(34,661 posts)it is called price fixing. Right now storage is cheap fueled by cheap financing. Every Packer is scared that the public is going to figure out just how bad they have been had.
The Retail landscape has changed in the last three years. Notice all the Brand Names that have been taken down. To understand the price rigging you need to look no further than how the Grocery Business works. Walmart is the single largest retailer bar none. But,they do not break or cut any Meat at all,everything they sell is done at the Packinghouse and they are able to dictate the profit margins. And this is spreading to other Retail Chains as a result. BTW,meat buyers for the Retail Super Markets are a savvy lot,they know once someone breaks the Market,all hell is going to break loose. Need nothing more than look at your weekly Ad's in your mail box. Ad prices are within pennies of each other,and you will see occasional door busters with the statement like while supply lasts.
Wall street is loving this,there players own the Storage and have access to cheap money if needed. Sometime down the road,yes,this stuff will have to hit the market,you can only make just so much Dog Food.
Coventina
(27,115 posts)Yes, I said murder.
No, I don't care what you might have to say about it.
marble falls
(57,081 posts)customerserviceguy
(25,183 posts)if ranchers, meat processors, and wholesalers go out of business, then there will be less of something you don't like and don't want the rest of us to have.
marble falls
(57,081 posts)consumed and not buried. A sort of sin eating.
MicaelS
(8,747 posts)Vegans get roasted (pun intended) here on DU.
Case in point this thread.
https://www.democraticunderground.com/10181242310
Posting shit that it's murder, and thus implying that people who eat meat are murders, does not win friends.
Just another example of everything negative posted against Vegans in the above thread are true.
marble falls
(57,081 posts)be consumed.
MicaelS
(8,747 posts)There are parts of animals I will not eat. Brains, stomach, some organ meats like thymus.
I will eat beef and chicken liver, and chicken gizzards. And of course natural casings for sausage.
marble falls
(57,081 posts)Glimmer of Hope
(5,823 posts)Baitball Blogger
(46,703 posts)Chick-Fil-A is doing their bit. They have a new BBQ sandwich with bacon and cheese. That should help with cut down on the reserves, and raise everyone's cholesterol levels.
marble falls
(57,081 posts)always a capacity for more production.
Runningdawg
(4,516 posts)Johnny2X2X
(19,061 posts)The stronger the lobby, the more they privatize all gains and socialize all risk and loss.
Bayard
(22,063 posts)They'd rather let food rot instead of feeding the poor.
Initech
(100,068 posts)GeorgeGist
(25,320 posts)Is the Alt-Right for Real?
...
By his own account, Lokey was writing as many as fifteen posts a day, among them most of the political pieces. The gig had a certain formula, he told Bloomberg: Russia=good. Obama=idiot. Bashar al-Assad=benevolent leader. John Kerry= dunce. Vladimir Putin=greatest leader in the history of statecraft. For Zero Hedge, Syria was a special obsession, a sign of the essential strength of authoritarian regimes and the weakness of democracies. (Putin Is Winning the Final Chess Match with Obama, one Zero Hedge article claimed last fall.) The pace of the propaganda was too much for Lokey; last month, he checked himself into a hospital, believing he was on the verge of a panic attack. The populism seemed false to him. Two guys who live a lifestyle you can only dream of are pretending to speak for you, he wrote. The unmasking that Bloomberg promised in its headline was really two, one inside the other. Remove the Tyler Durden mask and there were Backshall and Ivandjiiski, two successful bankers pushing populism. Remove the mask again and there was Lokey, pretending to be them. This isnt a revolution, Lokey wrote. Its a joke.
https://www.newyorker.com/news/benjamin-wallace-wells/is-the-alt-right-for-real
marble falls
(57,081 posts)https://www.vox.com/science-and-health/2018/7/24/17606958/meat-cheese-surplus-visualized
https://vegnews.com/2018/7/25-billion-pound-us-meat-stockpile-nears-record-high
https://www.kwtx.com/content/news/Dang-thats-a-lot-of-meat-AM-professor-says-as-US-surplus-grows--489031331.html
https://www.wilx.com/content/news/US-has-more-than-25-billion-pounds-of-meat-in-cold-storage-489072621.html
https://www.wsj.com/articles/meat-piles-up-as-production-grows-and-exports-slow-1532268000
https://www.plantbasednews.org/post/pork-farmers-scale-back-as-us-meat-surplus-hits-2-5-billion-pounds
https://fortune.com/2018/07/22/meat-stockpiles-tariffs-trade-war/
https://www.foodlogistics.com/warehousing/news/21014944/meat-stockpiles-fill-coldstorage-warehouses
https://www.agnews890.com/2018/07/24/2-5-billion-pounds-of-meat-piles-up-in-u-s-as-production-grows-exports-slow/
All better now???
Archae
(46,327 posts)The accusers are Judicial Watch.
marble falls
(57,081 posts)story is good.
Here are some other DU accepted sources for the same information:
https://www.axios.com/billion-pounds-us-meat-stockpiles-slowing-overseas-sales--756cda37-35ef-4008-810a-a7f680d3b578.html
https://www.vox.com/science-and-health/2018/7/24/17606958/meat-cheese-surplus-visualized
https://vegnews.com/2018/7/25-billion-pound-us-meat-stockpile-nears-record-high
https://www.kwtx.com/content/news/Dang-thats-a-lot-of-meat-AM-professor-says-as-US-surplus-grows--489031331.html
https://www.wilx.com/content/news/US-has-more-than-25-billion-pounds-of-meat-in-cold-storage-489072621.html
https://www.wsj.com/articles/meat-piles-up-as-production-grows-and-exports-slow-1532268000
https://www.plantbasednews.org/post/pork-farmers-scale-back-as-us-meat-surplus-hits-2-5-billion-pounds
https://fortune.com/2018/07/22/meat-stockpiles-tariffs-trade-war/
https://www.foodlogistics.com/warehousing/news/21014944/meat-stockpiles-fill-coldstorage-warehouses
https://www.agnews890.com/2018/07/24/2-5-billion-pounds-of-meat-piles-up-in-u-s-as-production-grows-exports-slow/
Archae
(46,327 posts)It will mean lower prices I'm pretty sure, which I am happy about.
And elsewhere in this thread someone says all this meat is from "murder."
That's pure horseshit, from nutcase groups like "ALF (Animal Liberation Front)" and PETA.
marble falls
(57,081 posts)in the meantime people are hungry and we keep on killing animals and storing their remains. We keep growing hundreds of thousands of acres in subsidized and price supported corn and soybeans.
Buckeyeblue
(5,499 posts)kimbutgar
(21,137 posts)mahatmakanejeeves
(57,434 posts)I remembered the story from last year.
2.5 Billion Pounds of Meat Piles Up in U.S. as Production Grows, Exports Slow
marble falls
(57,081 posts)and hasn't. I don't get it why that is.
elocs
(22,571 posts)When there was a big dairy and chicken surplus the last few months when I went to my local food pantry we got unlimited milk plus chicken which didn't count against our meat total.
ProudLib72
(17,984 posts)I guess she is safe for the time being.
marble falls
(57,081 posts)for 'Devin Nunes' treanchcoat' or 'Devin Nunes' Shoephone'. When he misses a plot,
Hell Nunes even looks like a better fed Max Smart.