Riding Herd Saying things that need to be said. November 15, 2022 • www.aaalivestock.com
Big Food LEE PITTS
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conomists have had to coin an all-new word to describe what is going on in grocery stores lately. The word is “greedflation” which is pretty much self-explanatory. In case you haven’t set foot in a grocery store lately here’s a brief recap.
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Retail food prices were up 11.4 percent in August from a year earlier.
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Eggs were 39.8 percent more expensive this August than they were a year ago.
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The price of chicken was 16.6 percent higher as consumers are switching from red meat to white.
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Dairy and processed-food prices also spiked. Margarine was up 38.3 percent in August on a year-over-year basis, and butter’s price was 24.6 percent higher. Flour and prepared flour mixes were 23.3 percent more expensive than a year earlier. Crackers were 17.7 percent more expensive, and frozen bakery products were up 18.1 percent. Frankfurter prices were up 18.3 percent in August vs. August 2021, while lunchmeat prices were up 18.2 percent.
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Lettuce was 15.2 percent more expensive.
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According to David Portalatin, a food analyst at NPD Group, “More Americans tried to save money by eating at home because your average
NEWSPAPER PRIORITY HANDLING
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restaurant meal is three and a half times that of having the same meal at home. But the cost of food for home preparation was still up 13.5 percent.” Have you seen the price for
erate and dominate the industry. “The same corporations that trumpet massive new profits and giveaways to their wealthy investors suggest they somehow had no choice but to inflate prices so high.”
Volume 64 • No. 11 “pricing power,” for the company’s record quarterly revenues of $8.2 billion, up 9 percent from the previous year. Tyson said in their third quarter earnings report that despite supply chain issues, “We maintained double-digit sales and earnings growth year to date as well as progressing toward our goal of delivering more than $1 billion in recurring productivity savings by the end of fiscal 2024.”
From Slaughterhouses to Supermarkets
A bumble bee is considerably faster than a John Deere tractor. cattle go up accordingly? So, just one question? Where did all that extra money go? If the farmer and rancher are only receiving 15 cents of every food dollar who is getting the rest of the money?
Bolder Than Bandits Suffice it to say, it’s a good time to be a packer or own a grocery store. According to Maeve Sheehey and Zach Cohen writing for Bloomberg, much of the food increases are being caused because we allowed multinational corporations to conglom-
And they are being so brazen about it. The conglomerates feel so bullet-proof they are throwing it in our face. “There’s no better time than the current hyperinflationary environment to have a strategic pricing tool, and we’re leveraging it to our advantage,” said Sysco CEO Kevin Hourican. Located in Houston, Texas, Sysco is the world’s largest broadline food distributor with more than 600,000 clients. Sysco reported higher earnings and sales for its fourth quarter. Starbucks CEO praised its
According to an investigation by the British newspaper, The Guardian, we’re drowning in greedflation because we’ve allowed the big to get so BIG they have almost unlimited pricing power. A joint investigation by the Guardian and Food and Water Watch found that “consumer choice is largely an illusion – despite supermarket shelves and fridges brimming with different brands. In fact, a few powerful transnational companies dominate every link of the food supply chain: from seeds and fertilizers to slaughterhouses and supermarkets to cereals and beers.” “The size, power and profits these mega companies have,” said the Guardian, “has expanded thanks to political lobbying and weak regulation which enabled a wave of unchecked mergers and acquisitions. This continued on page 2
USDA Provides $759 Million to Bring High-Speed Internet Access to Communities Across Rural America
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S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that the Department is providing $759 million to bring high-speed internet access (PDF, 204 KB) to people living and working across 24 states, Puerto Rico, Guam and Palau. Today’s investments include funding from President Biden’s Bipartisan Infrastructure Law, which provides a historic $65 billion to expand reliable, affordable, high-speed internet to all communities across the U.S. “People living in rural towns across the nation need high-speed internet to run their businesses, go to school and connect with their loved ones,” Vilsack said. “USDA partners with small towns, local utilities and cooperatives, and private companies to increase access to high-speed internet so people in rural America have the opportunity to build brighter futures. Under the leadership of President Biden and Vice President Harris, USDA is committed to making sure that people, no matter where they live, have access to high-speed internet. That’s how you grow the economy – not just in rural communities, but across the nation.” The $759 million in loans and grants comes from the third funding round of the ReConnect Program. As part of today’s announcement, for example:
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North Carolina’s AccessOn Networks Inc. is receiving a $17.5 million grant to connect thousands of people, 100 businesses, 76 farms and 22 educational facilities to high-speed internet in Halifax and Warren counties in North Carolina. The company will make high-speed internet service affordable by participating in the Federal Communications Commission’s (FCC) Lifeline and Affordable Connectivity Programs. This project will serve socially vulnerable communities in Halifax and Warren counties and people in the Haliwa-Saponi Tribal Statistical Area.
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Tekstar Communications is receiving a $12.6 million grant to deploy a fiber-to-the-premises network to connect thousands of people, 171 farms, 103 businesses and an educational facility to high-speed internet in Douglas, Otter Tail, St. Louis, Stearns and Todd counties in Minnesota. Tekstar will make highspeed internet affordable by providing its “Gig for Life” service, where households that sign up for internet will not have their internet prices raised as long as they stay at the same address and continue continued on page 3
by LEE PITTS
Boxed Beef
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ears ago I got a call from a college student who was doing his Senior Project in order to graduate. He told me he had a groundbreaking idea and wanted my opinion of it. I asked him what his BIG IDEA was and he replied, “containerized shipping.” As the son of a long haul trucker I had to break the news to him that his idea was already being implemented as everything from cheap Chinese toys to apples and oranges are now shipped in modules that can easily be craned on to a truck’s trailer or a railroad car. “I realize that,” he said. “My idea is to use those same containers to haul livestock.” Whoa! Now that was a new idea! I suppose the caller wanted to duplicate Fred Smith’s outlandish scheme he outlined in a Yale economics class paper that earned him a C grade. The caller wanted to do for livestock what Fred Smith had done for important paperwork and packages when he later created Fed Ex based on that college paper. “Shipping livestock in containers is the dumbest idea I’ve ever heard,” I told the young man. “That’s something a lonely sheepherder might think up but certainly not an intelligent cattleman.” Believe me, if it would have been a great idea I’d have stolen it and with all the money I made I would’ve bought a big, beautiful ranch where it rains on a semi-regular basis and I would have stocked it with the prettiest cows you ever laid your eyes on. I’d have bought a fairly recent model pickup with a heater and air conditioner that work, a dog that didn’t chase cows and a horse that did; maybe even a brand new vacuum cleaner for my wife. I proceeded to outline all the reasons why containerized shipping for livestock would never happen. “Ranchers would have to buy these containers and have a big crane at the ranch to load them. Then they’d ship them to an auction market which would also have to have several big cranes like those that dot the landscape in Long Beach and Seattle. That would be a sizable investment and would probably be a deal breaker right
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