Changing the way we eat canchange the way food is produced

MikeCallicrate.com 5-17-12

*All Fresh Choice Beef – USDA-ERS Data

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

1 2 3 4 5 6 7 8 9

19501975

1995 1996 19971998

2002

2000

2006

1999

Farm share of the consumer retail beef dollar

2012

2009

What is an animal worth?

May 16, 2012

*1,350 lb. live wt. x 42% retail yield = 567 pounds of fresh retail beef

567 pounds x $5.05/lb. (ave. retail price) = $2,863/head

Drop credit $175/head

Total value $3,038/head

1,350 lb. live animal at $120/cwt. = $1,620/head = 53% of retail value

Packer/Retailer share $1,418/head = 47% of retail value

* USDA commodity steer and heifer ave. slaughter weight

In 1975 the producer received 65% of the retail value of beef

Today’s 53% farm share leaves the producer 12% short of when the markets were competitive

12% x $3,038 = $370/head loss to the producer

NOTE: Farm Share is an indicator of market power. As the meat industry has become more concentrated (35% four-firm concentration to over 80%), while touting the benefits of economies of scale and efficiencies, producers have been squeezed. Consumers have paid more for industrial produced, lower quality, highly processed meat.

This giant t-bone tasted like it came from a happy cow! We love our beef form Claybrook Farms Meat via Cowpool!

How to increase farm and ranch gate income?

1,200 lb. animal (w/o growth enhancers) x 47% (bone-in) retail yield = 564 lbs. meat

1,200 lb. animal x 63% carcass yield = 756 lbs. hanging wt.

756 lbs. x $3.79/lb. hanging wt. $2,865Slaughter Fee -$65/headProcessing Fee (68 cents x hanging wt.) -$514Net income $2,286

1200 lb. animal x 47% retail yield (bone-in) = 564 lbs. of retail beef$2,286/head 564 lbs. = $5.08/lb. cost to consumer

1350 lb. animal x 42% retail yield (boneless) = 567 lbs. of retail beef$2,863/head 567 lbs. = $5.05/lb. cost to consumer

vs.

$2,286 1,200 lbs. = $1.90/lb. to producer

Economic Development vs.

Community Development

A major investigation into the school lunch industry is ongoing as companies that decide what food goes on your child's plate may be cheating schools and taxpayers out of millions. Sharyl Attkisson investigates charges of a corporate rip-off.

Rick Hughes with District 11 in Colorado Springs provides an alternative to Sodexo’s bad food and it’s theft of school lunch money…

Big companies swallowing up school lunch money?

CBS Evening News May 11, 2012