Producer's Earnings Down and Stronger Milk Prices
From the Ag Information Network, I'm Bob Larson with your Agribusiness Update.
**A recently released report form the USDA's Economic Research Service shows for every dollar American consumers spend on food, U.S. farmers and ranchers earn just 14.6 cents.
According to the National Farmers Union, this marks a 17% decline since 2011 and the smallest portion of the American food dollar that farmers have received since the USDA began reporting data in 1993.
The remaining 85.4 cents cover off-farm costs, including processing, wholesaling, distribution, marketing, and retailing.
**Last week, R-CALF USA filed a national class action lawsuit, alleging the four largest beef packers Tyson, Cargill, JBS and National Beef, had engaged in collusion to unlawfully depress prices paid to U.S. cattle producers.
As reported by agweb.com, in doing so, they increased both their margins and profits on the backs of the cattle producers.
R-CALF CEO, Bill Bullard say this litigation was filed to protect the integrity of our U.S. cattle industry, but taking this step didn't come lightly.
https://www.agweb.com/article/weve-exhausted-all-other-remedies-r-calf-ceo-says-of-lawsuit/?mkt/
**The sun is starting to shine a little brighter on the dairy industry as the dairy economy begins to show signs of life after years of darkness.
Milkbusiness.com reports, stronger milk prices are being supported by a draw down in supply, both in the U.S. and globally.
Stewart Peterson Vice President Brian Doherty says world demand is catching up to cheap prices and supply is beginning to level off, so that's the good story in dairy.
https://www.milkbusiness.com/article/dairy-margins-set-to-improve?mkt/
