On 8/29/2013 8:09 PM, Siri Cruise wrote:
> In article <M_QTt.116892$Le.5...@fx13.iad>,
> I don't know who is stupider you or George. The dependence on subsidies means
> this not a free market transaction, so you're an idiot to bring it up.
You are the person who brought up the basics of free markets, as
referenced: "They will have even less money to spend, and so not
increasing demand as fast as they increase supply."
Maybe you have difficulty understanding what you yourself posted.
> That you
> are unaware of subsidies to corn, potatoes, and cattle shows why you say such
> stupid things about politics.
Maybe you want to adopt the agitprop tactic of putting words and/or
ideas in other people's mouths. Show any indication of my being "unaware
of subsidies" in agriculture. The point that eluded you is that
"Enterprises like Mickey D's tend to buy the bulk of such products from
sources that have nothing to do with USDA subsidies."
To wit:
Why Does The U.S. Both Import And Export Beef?
Jun. 11, 2010
The job of markets is to seek out the highest value for products
produced and encourage the most efficient use of resources to facilitate
that production, says Derrell Peel, Oklahoma State University (OSU)
Extension livestock marketing specialist.
The job of markets is to seek out the highest value for products
produced and encourage the most efficient use of resources to facilitate
that production, says Derrell Peel, Oklahoma State University (OSU)
Extension livestock marketing specialist. Keeping this in mind helps
explain current production and trade relationships in the U.S. beef
industry.
“The U.S. is the largest producer, the largest consumer, the
third-largest exporter and the largest importer of beef in the world. I
get many questions about U.S. beef trade and particularly why we need to
import beef,” he says.
The role of beef exports is obvious, on the one hand, in that it
represents an addition to domestic beef demand and thus expands the
total size of the market for U.S. beef. However, beef exports play a
more subtle role that’s often not well understood.
One of many complexities that make the beef industry so challenging is
the fact that the set of animals processed into meat results in a vast
array of different products of different qualities. The set of products
produced does not, in general, exactly match the preferences of domestic
consumers. For instance, U.S. beef demand largely consists of demand for
ground beef and steaks. Ground beef can, of course, be made from a wide
variety of qualities of lean but steak demand is mostly oriented towards
high-quality middle meat cuts.
It’s a fact that we’ll eat what we produce, so if we don’t produce
exactly what we prefer, the total value that consumers will offer the
industry will be adjusted down as prices are reduced in order to entice
consumers to purchase what we have, as opposed to what they really
prefer. This makes the role of exports, particularly exports of lower
valued products, especially important because it allows the industry to
adjust the product mix to more closely fit the demands of the domestic
market. Thus, the export of things like Select chucks and rounds to
Mexico is very complimentary to the U.S. market.
The import side seems harder to understand but it mostly relates to the
hamburger market. Ground beef production requires much additional lean
to mix with the trim resulting from steer and heifer slaughter in order
to make ground beef.
Of course, most any quality of lean is suitable and we utilize our cull
cows and bulls for this purpose. We don’t produce enough cull cow meat,
so additional lean must be added to the mix. We could (and do) use some
of the chucks and rounds that have relatively low demand to grind back
into hamburger. However, this is relatively expensive product since we
have paid to feed it in the feedlot.
It’s not very efficient to feed cattle to higher quality and then grind
the meat back into hamburger. This is particularly true when we can sell
the meat in an export market. Even at a relatively low value as a muscle
cut, these products have a higher value for export than for grinding.
Not only that, but there are sources of additional lean that are cheaper
and support the extremely competitive fast food industry in the U.S. It
is at the hamburger market level where the beef industry competes most
intensively with pork and poultry and even a fraction of a cent/pound
change in cost for ground beef affects competitiveness of the industry.
Lean beef imports sourced from Australian range beef, New Zealand dairy
beef or Canadian cull cows are mixed with steer and heifer trim, thereby
providing competitively priced ground beef and a way to utilize trim
product that would have almost no value otherwise.
-- OSU Cow-Calf Corner
--
http://beefmagazine.com/cowcalfweekly/0611-why-does-us-import-export-beef