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Post by sandbox on Dec 22, 2011 10:46:59 GMT -5
Found this interesting. Wouldn't think Tyson would spend that kind of $$$ unless they thought they could accomplish something. *** www.porknetwork.com/pork-news/Corn-ethanol-target-of-Tyson-lobbying-135958048.html?ref=048Corn ethanol subsidies target of Tyson lobbying Angela Bowman, Staff Writer | Updated: December 21, 2011 Tyson Foods Inc., the nation’s largest meat company, recent disclosed that it spent more than $500,000 in the third-quarter to lobby the government against increasing corn ethanol subsidies. The Associated Press reports that Tyson’s opposition is because corn ethanol subsidies help drive up the price of its biggest input – feed grain. The company said it lobbied Congress to eliminate the corn ethanol tax credit and to explain the impacts of tax and trade policies and of requiring more ethanol be blended into gasoline. Tyson profit margins have been impacted by this year’s historically high corn prices. According to disclosure reports Tyson filed on Oct. 20 with the House clerk’s office, the company spent 13 percent less during this year’s third quarter than in 2010, when its July to September lobbying cost just shy of $600,000. It also spent 14 percent less than in the second quarter this year, when its lobbying cost $600,170. In addition to lobbying for the end of corn ethanol subsidies, Tyson also lobbied Congress on immigration reform and the USDA over the agency's antitrust efforts, which have targeted Tyson and other meatpackers. Additionally, the Springdale, Ark.-based meat producer lobbied on access to foreign markets including Korea, Russia, Japan and Mexico. Source: The Associated Press |
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Post by Sofakingwhat on Dec 23, 2011 17:29:40 GMT -5
What are they looking for? An easier way to get more wetbacks in to process chicken?
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Post by jabber1 on Dec 25, 2011 10:23:05 GMT -5
A case of frozen chicken wings just went from $40 to $65 per case for one local bar owner that has a wing night.
I assured the bar owner that there has never ever been $10 worth of corn put into producing that 40 lbs of chicken.
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dm479
FFA member
Posts: 78
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Post by dm479 on Dec 25, 2011 23:09:10 GMT -5
the deal is three fold here guys Tyson is not dumb 1 --it needs the ethonal deal killed because it drives it main stay up {corn}not much money in Chicken at $7corn---------2 it needs the immigration thing laxed to get cheper workers -----------3 open up foregin markets to sell more here is one more Tyson operates the worlds largest rendering plant here in Arkansas and experminting with and using animal Fat to power their TRUCKS I know for a fact they have powered their trucks for the last two years using FAT they just signed a deal with THE NAVY to supply FUEL from FAT to power a carrier in a excerise this summer No Tyson is not Dumb they are on the cutting EDGE---------------------------------dave
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Post by beaner on Dec 30, 2011 8:03:40 GMT -5
Who can blame Tyson. T he government stacked the deck in favor of ethanol plants being able to pay more for corn that drives up their feed costs. If I were Tyson CEO I would be lobbying against ethanol as well.
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Post by jabber1 on Jan 2, 2012 23:24:44 GMT -5
How much corn is in one pound of chicken in the meat case?
I believe that the maximum annual price of corn over the last 40 years from low to high has been about 10 pennies per pound. 10 pennies per pound of corn for feed over 40 years does not translate into much of a price increase in the cost to put a pound of chicken in the meat case.
Hope you have a Happy New Year Beaner.
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Post by papapap on Jan 3, 2012 8:11:38 GMT -5
"Industry Snapshot
Feed is by far the largest input cost of producing food and fiber of animal origin, exceeding even the initial cost of the animals themselves. The cost of feed represents 50 to 70 percent of the cost of producing meat, milk, and eggs at the farm level. For instance, the United States Department of Agriculture (USDA) calculates that it requires 88 pounds of feed to produce 100 pounds of milk; 9,523 pounds of feed to produce a steer; 1,273 pounds to produce a lamb; 50 pounds of feed for 100 eggs; 261 pounds of feed to produce 100 pounds of poultry; and 629 pounds of feed for 100 pounds of pork. In the case of grass-eating livestock such as cattle and sheep, a great deal of their nutrition may come from foraging pasture land, but the latter stages of their lives often require significant portions of prepared feeds. With poultry and hogs, however, nourishment is supplied primarily through prepared feed mixes."http://business.highbeam.com/industry-reports/food/prepared-feed-feed-ingredients-for-animals-fowls-except-dogs-cats
Even as efficient as poultry is with feed conversion, ~55% of finished cost is feed with major component being corn, it is easy to see how the higher cost of corn has to affect their profit. There have been some major processors file bankruptcy and as a result alot of farms with empty poultry houses that make extremely expensive hay barns. Other processors are not taking on new producers so there are very limited alternatives.
Tyson is just looking after their own best interest.
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Post by jabber1 on Jan 3, 2012 12:26:44 GMT -5
If 2 pounds of that 2.61 pounds of feed that it takes to get 1 pound of poultry was corn-
the maximum inflationary impact on chicken prices from an increase in corn prices of 10 pennies per pound over 40 years would be an added 20 pennies per pound of chicken.
An increase in the price of corn (due to all reasons) that increases the cost to produce a pound of chicken of 20 pennies per pound over 40 years should not even be on the radar of food consumers.
As the price of corn has never been over 14 pennies per pound and a pound of food is a lot of food, it is very hard or impossible for corn at any price to cause dramatic inflation in ready to eat food products.
A few years ago, it was suggested by the Washington Post that a kilo- 2.2 pounds- of tortillas fed a Mexican family of 5 for one day. This article also suggested that the Mexican minimum wage was about $4 per day. At the time that the article was written the maximum two year range in commodity corn prices was about 4 pennies per pound which would equal about 1% of ONE MINIMUM WAGE EARNER'S daily income to feed 5 people. For some reason not exposed by the Post, Mexican tortilla prices increased in large multiples of the price of the commodity corn, yet this increase was somehow supposedly mostly due to US ethanol policy. Nonsense. The increase in corn prices was due to many supply and demand changes and the increase in commodity corn prices was a very small increment of the inflation in tortilla prices in Mexico.
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Post by papapap on Jan 3, 2012 13:11:29 GMT -5
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Post by Sofakingwhat on Jan 3, 2012 14:16:36 GMT -5
Thanks Jabber, for proving me wrong. Wrong in assuming the other posters here could figure out the math themselves. I gave them too much credit. Thanks for bringing them up to par.
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Post by jabber1 on Jan 3, 2012 21:13:04 GMT -5
Thanks Jabber, for proving me wrong. Wrong in assuming the other posters here could figure out the math themselves. I gave them too much credit. Thanks for bringing them up to par. Just a reminder for most that post here. Farm operators will have to consistently remind all just how much of the food dollar goes to the producer. The media has often proven that they forgot grade school math. |
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Post by Grainbelt on Jan 4, 2012 8:34:41 GMT -5
We have held shares of TSN and SFD for over 2 years now. Profit margins have improved over that time. The biggest problem they have had increasing margins over that time, is the glut of cheap poultry on the market. There is a huge oversupply of cheap animal protein out there. We are rethinking our position currently, especially on TSN. |
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