Beef prices & my paycheck
It seems everybody knows those rules, so when I’m traveling and visit with fellow ag business folks the conversation usually starts out on one of those two notes. Recently upon learning I worked for Certified Angus Beef, a guy said, “Huh, so are these cattle prices cutting into your margins? Or do you just hike up the price of your beef and pass it along to the consumers?” (*Note this was before those prices were flirting with limit down levels today…)
From what ad features retailers will commit to running to the number of cattle going to harvest in a given a week, cattle prices do have a big effect on our business. But it’s not quite as direct as that guy was thinking.
After all, in essence we are a non-profit, marketing company.
I thought I’d dust off this Mythbuster post that addresses how we’re funded and should indirectly address this one:
Myth: CAB sets beef prices, depending on the cattle market.
Fact: https://cabcattle.com/2011/03/28/show-me-the-money/
I’m not an accounting whiz or a market forecaster, but if you’ve got any other questions along these lines, let me know. I know people who are!
May your bottom line be filled with black ink,
~Miranda
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