Unformatted text preview: reliable way of sustaining that volume. The large meatpacking companies say that they’ve become a convenient scapegoat for ranchers, when
the real problem is low poultry prices. A pound of chicken costs about half as much as a pound of beef. The long-term deals now being
offered to cattlemen are portrayed as innovations that will save, not destroy, the beef industry. Responding in 1998 to a USDA investigation
of captive supplies in Kansas, IBP defended such “alternative methods for selling fed cattle.” The company argued that these practices were
“similar to changes that have already occurred… for selling other agricultural commodities,” such as poultry.
Many independent ranchers are convinced that captive supplies are used primarily to control the market, not to achieve greater
slaughterhouse efficiency. They do not oppose large-scale transactions or long-term contracts; they oppose cattle prices that are kept secret.
Most of all, they do not trust the meatpacking giants. T...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08