Farming bank warns grocery prices will continue to rise

[Ken07AOVette]

Originally Posted by MountainTi

Stopped in the feed store today and surprised a bag of rolled oats was only $15. Guessing that will go up.

Will make it easier paying for those million dollar quarters selling recently east of here on the #2 corridor

Quarters here have been hitting $600,000 last couple years. Same farmer buys them all. Has 40 sections now.

Bag of oats- 50lb?

[MountainTi]

Originally Posted by Ken07AOVette

Quarters here have been hitting $600,000 last couple years. Same farmer buys them all. Has 40 sections now.

Bag of oats- 50lb?

Yes. 32 lbs in a bushel

[Ken07AOVette]

Originally Posted by MountainTi

Yes. 32 lbs in a bushel

ah ok sorry didn't know it was a bushel bag. I guess everything seed related to a farmer is a bushel, apologies

[MountainTi]

Originally Posted by Ken07AOVette

ah ok sorry didn't know it was a bushel bag. I guess everything seed related to a farmer is a bushel, apologies

You were right, they are 50lb bags like you said. Oats are 32lbs/bushel, so a bag at the feed store has 1 1/3 bushels or so.
Bags are marked up significantly, so $15/bag is pretty cheap if oats are selling for $9.30/bushel. Prices per bag will raise substantially I'm guessing

[Jim Blake]

Originally Posted by Ken07AOVette

Quarters here have been hitting $600,000 last couple years. Same farmer buys them all. Has 40 sections now.

Bag of oats- 50lb?

the last few farm quarters sold by Ritchie Bros. in the Innisfail area sold for North of a million bucks.

The last quarter listed on the Real Estate market in our area went for 620Kwith the first parcel out. (Recreation quarter, or poor pasture quarter)

There is virtually nothing else on the market right now for sale. See what the Spring/Summer market brings.

[EdmontonEli]

Originally Posted by IronNoggin

Farming bank warns grocery prices will continue to rise

Canadians could see ballooning grocery prices for the “foreseeable future,” a federal agricultural bank is warning.

Farm Credit Canada made the prediction in their Quarterly Economic And Financial Market Update, according to Blacklock’s Reporter.

The bank named the supply chain crisis and labour shortages as two reasons for growing prices.

“We believe food inflation will remain elevated for the foreseeable future,” stated the report. “As supply chain disruptions and labour challenges ease and the supply of agricultural commodities rebounds we should record lower food inflation. The difficult question is around the timeline associated with a return to average inflationary pressures.”

https://tnc.news/2021/12/06/farming-...tinue-to-rise/

Saw this coming 2 years ago with all the money being printed for all the CERB/welfare handout by the government. I warned people about it 2 years ago, but I was called crazy and doesn't know what I'm talking about. Heh~

[tranq78]

What is pathetic is the media is talking about inflation non-stop but not once do they say the real reason for inflation -- our government is printing money out of thin air.

MSM interviews so-called experts who talk about how the people on fixed incomes or working poor are suffering. MSM talks about toy shortages, rising gasoline prices, high grocery prices, BC flooding but they twist like a leaf in a stiff breeze avoiding holding the Liberals and their Minister-of-Middle-Class-Prosperity to account.

The media is part of the problem if they don't report the truth. The voters are the other part of the problem. We, as a nation, voted in this government 3 times in a row.

And where is our Minister-of-Middle-Class-Prosperity anyway? Isn't she supposed to take care of inflation for us and make us prosperous?

[AtimoseMan]

As a small farmer I just dont see the logic in growing crops this coming year. Fertilizer is $1400 a tonne, seed wheat is $21.50 a bushel, oats $13 and Barley at $16.50 my last quote. Fuel at 1.30 lt, roundup from $70 to $140, other chemicals doubled. The soil is powder from surface to up to 36 inches with little snow yet. Were is there any profit to survive. The grain bins could be empty due to summer follow. You think things are bad now wait until next year!!
As for the government inflation rate add a zero to there number, when they say %4 its actually %40

[Grizzly Adams1]

Originally Posted by AtimoseMan

As a small farmer I just dont see the logic in growing crops this coming year. Fertilizer is $1400 a tonne, seed wheat is $21.50 a bushel, oats $13 and Barley at $16.50 my last quote. Fuel at 1.30 lt, roundup from $70 to $140, other chemicals doubled. The soil is powder from surface to up to 36 inches with little snow yet. Were is there any profit to survive. The grain bins could be empty due to summer follow. You think things are bad now wait until next year!!
As for the government inflation rate add a zero to there number, when they say %4 its actually %40

I know a couple of ranchers who know the logic of feeding 200. / rd. bale hay, but they do it anyway.

Grizz

[HVA7mm]

Meat packers' profit margins jumped 300% during pandemic - White House economics team

WASHINGTON, Dec 10 (Reuters) - Four of the biggest meat-processing companies, using their market power in the highly consolidated U.S. market to drive up meat prices and underpay farmers, have tripled their own net profit margins since the pandemic started, White House economics advisers said.

Financial statements of the meat-processing companies - which control 55%-85% of the market for beef, poultry and pork - contradict claims that rising meat prices were caused by higher labor or transportation costs, advisers led by National Economic Council Director Brian Deese wrote in an analysis published on the White House website Friday.

Officials studied earnings statements from Tyson Foods Inc (TSN.N), the chicken producer and biggest U.S. meat company by sales; Brazil-based JBS SA (JBSS3.SA), the world's biggest meatpacker; Brazilian beef producer Marfrig Global Foods SA (MRFG3.SA) which owns most of National Beef Packing Company (NBEEF.UL); and Seaboard Corp RIC (SEB.A).

Those statements showed a 120% collective jump in their gross profits since the pandemic and a 500% increase in net income, the analysis shows. These companies recently announced $1 billion in new dividends and stock buybacks, on top of the more than $3 billion they paid to shareholders since the pandemic began.

https://www.reuters.com/business/mea...cs-2021-12-10/


I really wish that there were more options for farm to table in Canada. Unfortunately not many people have the storage capacity for 1/4 let alone a side or a whole beef. These friggin middle men really put the squeeze on the consumer and rip off the ranchers (I know, nothing new).

[esher]

Originally Posted by MountainTi

Yes. 32 lbs in a bushel

Yankee oats is 32 lbs, ours is 34.

[MountainTi]

Originally Posted by MountainTi

Stopped in the feed store today and surprised a bag of rolled oats was only $15. Guessing that will go up.

Will make it easier paying for those million dollar quarters selling recently east of here on the #2 corridor

Bag of rolled oats at the feed store yesterday now over $22. Might have to start eating some of these horses.

[roper1]

Originally Posted by MountainTi

Bag of rolled oats at the feed store yesterday now over $22. Might have to start eating some of these horses.

Small silver lining though, broke & performance horses all time high!

[barsik]

speaking of profiteering did anyone else hear about the class action lawsuit regarding price fixing by several major grocers on the price of bread? apparently from what little information I got, this is a Canada wide situation which occurred over a number of years. the lawsuit is seeking 40 billion dollars from these grocers and the lawyers actually have a strong case because one of those grocers has admitted it publicly.

[MountainTi]

Originally Posted by roper1

Small silver lining though, broke & performance horses all time high!

That they are. Sister selling barrel horses for some pretty huge dollars.

Mine look to be too fat to perform very well right now. Well marbled I would guess though

[Drewski Canuck]

Hey HVA7MM,

Alberta lived its own Dream when it came to market domination. You gave the following example:

"Financial statements of the meat-processing companies - which control 55%-85% of the market for beef, poultry and pork - contradict claims that rising meat prices were caused by higher labor or transportation costs, advisers led by National Economic Council Director Brian Deese wrote in an analysis published on the White House website Friday."

At one time the biggest packing plant in Alberta and Western Canada was Lakeland Packers in Brooks.

A Listeria outbreak shut it down, and millions of pounds of beef went to the landfill.

Who owned Lakeland? Was it a major Auction House by chance? My understanding is that it was Nielsen Brothers.

At Auction, if the buyers for the Packing Plant are not happy with the price, and there is no competition from other meat packers, then the price can stay depressed for the farmer.

After Lakeland and Nielsen Brothers went under because of the Listeria shut down, the market somewhat improved for Alberta producers, but it was not from the remaining Western Canadian Meat Packing plants competing for finishing steers. The Americans came up to be re build their herds that they had to send to slaughter when they had a string of drought years.

If last year's draught repeats itself for the American Midwest farmers, we will again sell Canadian Cattle on the hoof to our Southern neighbours.

But as for the price of beef, it is going way up this spring.

Drewski

[MountainTi]

Originally Posted by Drewski Canuck

Hey HVA7MM,

Alberta lived its own Dream when it came to market domination. You gave the following example:

"Financial statements of the meat-processing companies - which control 55%-85% of the market for beef, poultry and pork - contradict claims that rising meat prices were caused by higher labor or transportation costs, advisers led by National Economic Council Director Brian Deese wrote in an analysis published on the White House website Friday."

At one time the biggest packing plant in Alberta and Western Canada was Lakeland Packers in Brooks.

A Listeria outbreak shut it down, and millions of pounds of beef went to the landfill.

Who owned Lakeland? Was it a major Auction House by chance? My understanding is that it was Nielsen Brothers.

At Auction, if the buyers for the Packing Plant are not happy with the price, and there is no competition from other meat packers, then the price can stay depressed for the farmer.

After Lakeland and Nielsen Brothers went under because of the Listeria shut down, the market somewhat improved for Alberta producers, but it was not from the remaining Western Canadian Meat Packing plants competing for finishing steers. The Americans came up to be re build their herds that they had to send to slaughter when they had a string of drought years.

If last year's draught repeats itself for the American Midwest farmers, we will again sell Canadian Cattle on the hoof to our Southern neighbours.

But as for the price of beef, it is going way up this spring.

Drewski

Lakeside

[tranq78]

Originally Posted by barsik

speaking of profiteering did anyone else hear about the class action lawsuit regarding price fixing by several major grocers on the price of bread? apparently from what little information I got, this is a Canada wide situation which occurred over a number of years. the lawsuit is seeking 40 billion dollars from these grocers and the lawyers actually have a strong case because one of those grocers has admitted it publicly.

That was partly settled about 6-7 years ago. You contacted Loblaws and they sent you a $25.00 gift card to use at Superstore, their grocery chain in Alberta.

The other grocers did not settle if I recall, so case may still be ongoing with them.

[Drewski Canuck]

My bad, it was Lakeside, not Lakeland.

All the same, the market is rigged against the producers. But sometimes it backfires against the middle men.

Imagine all those grain elevator companies who took futures contracts last spring who now have to deliver the product and subsidise each bushel they ship.

Drewski

[IL Bar]

Originally Posted by Drewski Canuck

My bad, it was Lakeside, not Lakeland.

All the same, the market is rigged against the producers. But sometimes it backfires against the middle men.

Imagine all those grain elevator companies who took futures contracts last spring who now have to deliver the product and subsidise each bushel they ship.

Drewski

It’s been my understanding that the elevators don’t speculate that much on grain. Any futures contract they have would already have producers that committed tonnes to future delivery. They make most of their money on the handling and blending of grain. Lots of money to be made in the grading room with their blending abilities.

[gunluvr]

There's only one way consumer prices for beef will come down: If everybody stops buying it.

[cody j]

Originally Posted by gunluvr

There's only one way consumer prices for beef will come down: If everybody stops buying it.

Don’t say that, the losses would just be passed down to the rancher

[Smoky buck]

Originally Posted by cody j

Don’t say that, the losses would just be passed down to the rancher

The cost of beef has already caused my household to cutback on eating beef. I bet there is many others have done the same. I only buy steak on sale theses days

It’s nothing against the ranchers but I cannot justify the cost. Sadly I see more beef going to the discount/last day section and odds are more waste. Myself I can’t buy meat that is expiring

I have cut back to maybe 1/4 of the beef I purchased in the past do to cost.

[RandyBoBandy]

Real problem is, all the "middlemen" that profit from doing absolutely NOTHING...straight robbery...The rancher gets a pittance

[gunluvr]

Originally Posted by cody j

Don’t say that, the losses would just be passed down to the rancher

Make a deal with a farmer, buy a whole animal, have it slaughtered, take it to a butcher. Some smaller meat processors do it all. Or even do it yourself. Even split it with another family.
Eliminate the middleman.

[ditch donkey]

Originally Posted by Smoky buck

The cost of beef has already caused my household to cutback on eating beef. I bet there is many others have done the same. I only buy steak on sale theses days

It’s nothing against the ranchers but I cannot justify the cost. Sadly I see more beef going to the discount/last day section and odds are more waste. Myself I can’t buy meat that is expiring

I have cut back to maybe 1/4 of the beef I purchased in the past do to cost.

We eat a lot of beef. I built a butcher shop on my farm. I bought 2 steers and 3 hogs in the spring, put them on all the grass and grain they want all summer, and the wife and I butchered them in late October.

It’s a pile of work butchering. All in, probably 7 full days of killing, and meat cutting. 14 days of hanging in between. And I get angry cause I could use those 7 days for hunting, or doing something enjoyable. And I get angry when I’m fencing, going for grain, going to pick up animals, cause I could use that time for something enjoyable. But I don’t sweat the price of meat. If my kid wants a tenderloin on a Tuesday night (he gets them all because I just eat so much that they’re better suited for a 10 year old) it’s no big deal.

[Smoky buck]

Originally Posted by ditch donkey

We eat a lot of beef. I built a butcher shop on my farm. I bought 2 steers and 3 hogs in the spring, put them on all the grass and grain they want all summer, and the wife and I butchered them in late October.

It’s a pile of work butchering. All in, probably 7 full days of killing, and meat cutting. 14 days of hanging in between. And I get angry cause I could use those 7 days for hunting, or doing something enjoyable. And I get angry when I’m fencing, going for grain, going to pick up animals, cause I could use that time for something enjoyable. But I don’t sweat the price of meat. If my kid wants a tenderloin on a Tuesday night (he gets them all because I just eat so much that they’re better suited for a 10 year old) it’s no big deal.

Oh I miss living on acreage because of the ability to grow/raise some food for the house. Presently residential so it’s not an option but maybe in the future

[Dean2]

I have some sympathy for farmers and ranchers who get screwed by low prices when beef is selling for such high retail prices. Fopr most people buying a whole cow direct, or splitting one doesn't work. With two of us, we can only use so much burger, stew meat or sausage. Realistically we eat steak and roast, and a little burger. I have worked out prices a couple of times with the idea of buying a whole cow, and donating the cuts we won't use to a food bank. Ends up working out to about slightly less than we pay at the store but not worth the work for what you save.

I have often said farmers are their own worst enemies. If they had banded together and opened their own processing plants, as well as grain purchasing and shipping they would earn a much higher return. Unfortunately, every one of those that I have seen has ended up going broke eventually. Even UFA has problems staying in business. If you can't develop market power and some control over pricing you are always going to earn the smallest piece of the pie.
Worst to worst, most farmers would have been far better off to buy up huge blocks of shares in Cargil, Monseta, Nutrian and the like. You don't actually have to control the company as long as you have enough of the share/votes and policies to impact the selection of board members, business policy and strategy, but I have never seen farmers even try to do something like that.

The larger the companies get, and the less the competition the more the average producer and consumer gets screwed.

[cowmanbob]

The hutterites tried their own hog processing plant in Manitoba and almost lost their shirt after a few years. After BSE hit in ‘03 a few beef co-operatives got started but failed , one problem might be the year round supply of market ready cattle. The meat packing and feedlot industry is huge and the little guys can’t compete.

[Dean2]

Originally Posted by cowmanbob

The hutterites tried their own hog processing plant in Manitoba and almost lost their shirt after a few years. After BSE hit in ‘03 a few beef co-operatives got started but failed , one problem might be the year round supply of market ready cattle. The meat packing and feedlot industry is huge and the little guys can’t compete.

I agree. You definitely have to have scale to compete these days. Going back 50 years, the cooperatives had problems staying profitable and well run. Management was not great, they often hired local, friends, relates etc and the board members were elected from the cooperative membership, and they were often not well versed in how corporate operations should be run. The lack of professional/experienced board members and management is a big issue that cannot be overcome in today's highly competitive world.

That is why I suggested farmers get together, by a wack of shares, and vote their shares as a block. Best of both worlds, huge, well run companies with experienced board members, but you get to have a say in how you are treated. I think a guy could build a really profitable business that focused on managing an investment fund where farmers invest cash, the fund buys the shares of all the major producers, processors, grocery retailers etc like Cargil, Monsanto, Weston, Costco. Long term these have been high quality stocks to own, so would produce a good return to the farmers investing and being centralized you could proxy vote all the shares.If I wasn't retired I would seriously consider opening up an investment company with that as its focus.