In my last post in this thread I shared my occupation as a farmer and some details about the work we have began in my area. That has been moving along well with many suppliers filling the needs as they come up, seed, fuel,chemicals, vaccines, livestock feed etc. The methods often take longer and more planning is involved but we are all starting to become familiar with the new trend or way of doing business. So, every few days it seems there is a new obstacle and plans change, don't know how long this will last, that of course is the big question for most of the world now.
Just wanted to mention to give you even more to think about,many of us farmers are producing perishable products. Those products have a beginning and an end. I'm involved in the beginning and middle in my small farm operation, some neighbors are producing from beginning to near the end finished product, some of these guys I work for for added income. I've always believed that supply and demand will influence my decisions the most as well as prices, weather is always a concern throughout the year and can change my income drastically, it's just part of it, can't change it.
Now some of my neighbors have received calls not to bring finished cattle to market. They have too many, my guess is lack of help at those facilities, and do not want livestock to come in with out permission.
One pork plant has closed because of the virus, too many employees sick.
It is a large plant but the % of food from there is not enough for big concern yet.
Since many of these end of the production processing plants are located near large population centers this may be a new trend coming soon, it will greatly affect us all in the US and those we export to.
I'm going to make a prediction and hope I'm wrong. You may see prices go up dramatically, soon!
It should not happen but actually has been happening to you even before the virus, farmers do not set the prices you pay in the store. The price we receive for cattle now are 20 to 40% below that of two years ago and it is getting worse each day. The price you pay in the store is the same or higher and is probably going to get even more expensive. The price of beef in the store should have been dropping for the last 9 months, it did not.
There is enough in cold storage that there will not be a shortage for quite some time but I'm willing to wager that a shortage will be declared, that may be what you hear at the grocery store. If so, couldn't be further from the truth, there is no shortage, but a break in the supply chain.
It will have a trickle down affect, this will happen fast, much income/profit probably will be lost by many of us that are producing more food than we can use, for our customers that need and want to buy it but it may not be available in your store. Just remember, supply and demand, and our supply chain is about to break, there is a weak link and it's at the very end of production.
I sure hope I'm wrong about this!




